Australia financial regulator Australian Securities & Investments Commission (ASIC) has announced that Pedro Eduardo Sasso, the director of Maxi EFX Global AU Pty Ltd (EuropeFX), has been banned by ASIC from being a director of or controlling an entity that carries on a financial services business.
EuropeFX was the corporate authorised representative (CAR) of former Australian financial services licensee, Union Standard International Group Pty Ltd (USGFX), which is now in liquidation.
EuropeFX offered retail clients access to over-the-counter (OTC) derivative products issued by USGFX, including contracts-for-difference (CFDs).
ASIC found that it has reason to believe Mr Sasso is not competent to act as an officer of a financial services business nor a fit and proper person in this respect and should be banned from performing this function for a period of five years.
ASIC found that Mr Sasso:
- exercised very little oversight of EuropeFX’s operation and did not take steps to mitigate or address any problems within the operation of the business
- abrogated his responsibilities for supervision and oversight to persons offshore, without any organised and proper monitoring structures in place, and
- failed to address or take adequate steps to investigate issues that arose particularly in relation to client complaints.
Pedro Sasso’s banning order took effect on 6 May 2024. He then applied on 8 May 2024 to the Administrative Appeals Tribunal (AAT) for a review of ASIC’s decision, as well as for stay and confidentiality orders. Following an interlocutory hearing on 25 June 2024, the AAT issued a decision on 23 July 2024 refusing Mr Sasso’s application for stay and confidentiality orders.
Mr Sasso’s banning is recorded on ASIC’s banned and disqualified register.
Background
Mr Sasso was a director of EuropeFX from 28 March 2018 to 20 September 2018. Since 30 April 2019, Mr Sasso has been the sole director of EuropeFX.
On 8 July 2020, USGFX entered into voluntary administration and on 3 September 2020 liquidators were appointed to it.
In July 2020, ASIC suspended the AFS licence of USGFX and in September 2020, ASIC cancelled USGFX’s AFS licence.
On 10 December 2019, ASIC took action against USGFX in the Federal Court of Australia pursuant to section 1323 of the Corporations Act. On 10 December 2020, ASIC commenced civil penalty proceedings against USGFX and its former CARs, EuropeFX and TradeFred. On 25 August 2023, the trial in respect of liability concluded and judgment is currently reserved.
