FX AND CFD BROKER RIZZAK CAPITAL LOSES AFS LICENSE IN AUSTRALIA
The Australian Securities and Investments Commission (ASIC) has canceled the Australian financial services (AFS) license of Rizzak Capital Pty Ltd (Rizzak Capital).
Rizzak Capital was a “leading independent broker in the trading of foreign exchange, contract for differences and spread game products”, according to its own website which has since been shut down.
The Australian financial watchdog stated the Rizzak Capital’s AFS license was canceled because the entity failed to comply with the key person condition of its AFS licence and failed to lodge its financial statements and audit opinions for the financial years ended 30 June 2020 and 30 June 2021.
Rizzak Capital may apply to the Administrative Appeals Tribunal for a review of ASIC’s decision, the regulator added.
Rizzak Capital Pty Ltd has held AFS licence no. 429966 since 30 January 2013, but the firm was far from being a prominent broker within the local brokerage space.
TRADE360 LOST AFS LICENSE AFTER PRESSURE SELLING TACTICS
Sirius Financial Markets, an ASIC-authorized over-the-counter (OTC) derivatives provider operating as ‘Trade360’, has recently surrendered its license following an investigation by the financial watchdog.
The firm’s former executives, Jonathan Schneider and Oskar Pecyna, were handed eight-year bans, restricting them from controlling an entity that carries on a financial services business or performing any executive or management role in relation to a financial services business.
Sirius Financial Markets operated with the brand ‘Trade360’ and was found to have engaged an off-shore call center, Toyga Media Ltd (Toyga), to source clients to trade in high-risk contracts-for-difference (CFDs) and margin foreign exchange contracts products issued by Sirius Financial.
According to ASIC’s investigation, Toyga persuaded clients to trade using pressure selling tactics and provided clients with personal advice when Sirius Financial was not licensed to do so.
ASIC Commissioner Danielle Press said: ‘ASIC’s investigation uncovered concerning consumer losses from trading in CFDs, including a Sirius Financial investor, who had limited knowledge of the market, losing over $400,000 after being told CFDs were a safe investment.’
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