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Abstract:The Australian Securities & Investments Commission (ASIC) has announced a significant decision regarding Pedro Eduardo Sasso, the director of Maxi EFX Global AU Pty Ltd (EuropeFX). Effective from May 6, 2024, Mr. Sasso has been banned from serving as a director or controlling an entity that operates a financial services business for a period of five years.
The Australian Securities & Investments Commission (ASIC) has announced a significant decision regarding Pedro Eduardo Sasso, the director of Maxi EFX Global AU Pty Ltd (EuropeFX). Effective from May 6, 2024, Mr. Sasso has been banned from serving as a director or controlling an entity that operates a financial services business for a period of five years.
EuropeFX, a corporate authorized representative (CAR) of the now-liquidated Australian financial services licensee Union Standard International Group Pty Ltd (USGFX), offered retail clients access to over-the-counter (OTC) derivative products issued by USGFX, including contracts-for-difference (CFDs). However, ASICs investigation concluded that Mr. Sasso was not competent to act as an officer of a financial services business, nor was he considered a fit and proper person to hold such a position.
Background of the Case
Mr. Sassos involvement with EuropeFX began on March 28, 2018, when he became a director. He later assumed the role of the sole director from April 30, 2019. The issues leading to this significant regulatory action stem from the broader collapse of USGFX:
Voluntary Administration and Liquidation: USGFX entered voluntary administration on July 8, 2020, with liquidators appointed on September 3, 2020.
Licence Suspension and Cancellation: ASIC suspended USGFXs Australian Financial Services (AFS) licence in July 2020, subsequently canceling it in September 2020.
Federal Court Action: On December 10, 2019, ASIC initiated action against USGFX in the Federal Court of Australia under section 1323 of the Corporations Act. Civil penalty proceedings against USGFX and its former CARs, including EuropeFX and TradeFred, commenced on December 10, 2020. The liability trial concluded on August 25, 2023, with judgment currently reserved.
The case underscores ASIC's commitment to ensuring that individuals in key positions within the financial services sector are competent and adhere to their responsibilities, particularly in protecting retail clients and maintaining the integrity of the financial markets.
Key Findings by ASIC
ASIC identified several critical issues in Mr. Sasso's oversight of EuropeFX:
Inadequate Oversight: Mr. Sasso demonstrated very little oversight of EuropeFXs operations, failing to implement or address necessary measures to mitigate or rectify operational problems.
Delegation Without Monitoring: He delegated his supervisory responsibilities to offshore personnel without establishing any organized and proper monitoring structures.
Neglecting Client Complaints: Mr. Sasso did not take adequate steps to investigate or address issues arising from client complaints.
Administrative Appeals Tribunal (AAT) Decision
Following the banning order, Mr. Sasso sought a review of ASIC's decision through the Administrative Appeals Tribunal (AAT) on May 8, 2024. He also requested stay and confidentiality orders. However, after an interlocutory hearing on June 25, 2024, the AAT issued a decision on July 23, 2024, refusing Mr. Sasso‘s application for these orders. As a result, the banning remains in effect, and Mr. Sasso’s status is recorded on ASICs banned and disqualified register.
Disclaimer:
The views in this article only represent the author's personal views, and do not constitute investment advice on this platform. This platform does not guarantee the accuracy, completeness and timeliness of the information in the article, and will not be liable for any loss caused by the use of or reliance on the information in the article.
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