ASIC has banned the director of a business that leased an automated trading robot designed to work on foreign exchange trading platforms from providing any financial services for a period of four years.
In a statement on Monday, the regulator said that it had banned Gregory William Finerty, the sole director of Bradford AI, after finding that he carried on a financial services business without an Australian financial services (AFS) licence and engaged in misleading and deceptive conduct.
The Gold Coast man is banned from controlling, whether alone or with others, an entity that carries on a financial services business and performing any function involved in carrying on a financial services business.
According to ASIC, Bradford AI leased an algorithmic trading program known as “Robot 1” to trade on the foreign exchange market using Australia-based over-the-counter contracts for difference (CFD) broker.
“ASIC found between about January 2020 to at least the end of December 2021, Mr Finerty dealt in financial products without a licence by arranging for his clients to acquire and dispose of financial products, being foreign currency CFDs,” the regulator said.
“ASIC also found Mr Finerty engaged in misleading or deceptive conduct when he mislead clients about the performance of Robot 1 and directed or assisted clients to mislead the CFD broker about their trading experience.”
In banning Mr Finerty, ASIC also found that he is not a fit and proper person to provide financial services, is not adequately trained or competent to provide financial services, and is likely to contravene financial services law.
The regulator noted that Mr Finerty has the right to appeal to the Administrative Appeals Tribunal for a review of its decision.