Australia’s regulator, the Australian Securities & Investments Commission (ASIC) has announced that Pedro Eduardo Sasso, director of Maxi EFX Global AU Pty Ltd (EuropeFX), has been banned by ASIC from being a director or controlling an entity engaged in financial service business.
EuropeFX was the corporate authorized 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 has found that it has reason to believe that Mr Sasso is not competent to act as an officer of a financial services business or a fit and proper person in that regard and that he should be banned from acting in that capacity for a period of five years.
ASIC found that Mr Sasso:
- exercised very little oversight of the operation of EuropeFX and took no action to mitigate or address problems in the operation of the business
- abolished its powers of supervision and oversight of offshore persons, without organized and appropriate monitoring structures, and
- failed to address or take appropriate steps to investigate issues that arose particularly in relation to customer complaints.
Pedro Sasso’s ban came into effect on 6 May 2024. He subsequently applied to the Administrative Appeals Tribunal (AAT) on 8 May 2024 for a review of ASIC’s decision, as well as stay and confidentiality orders. Following an interim hearing on 25 June 2024, the AAT issued a decision on 23 July 2024 dismissing Mr Sasso’s application for stay and confidentiality orders.
Mr Sasso’s ban is recorded on ASIC’s banned and debarred register.
Record
Mr. Sasso was a director of EuropeFX from March 28, 2018 to September 20, 2018. As of April 30, 2019, Mr. Sasso is the sole director of EuropeFX.
On 8 July 2020 USGFX entered voluntary administration and on 3 September 2020 liquidators were appointed to it.
In July 2020, ASIC suspended USGFX’s AFS license and in September 2020, ASIC revoked USGFX’s AFS license.
On 10 December 2019, ASIC took action against USGFX in the Federal Court of Australia under 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 August 25, 2023, the liability trial was completed and judgment is currently reserved.