ASIC Bars XTrade Directors Over Compliance Failures and Misconduct

The Australian Securities and Investments Commission (ASIC) today (July 18) has imposed bans on Mr Shay Zakhaim and Mr Anthony Anderson, former directors and responsible managers of XTrade.AU Pty Ltd (XTrade), prohibiting them from engaging in financial services business activities for three and five years, respectively. ASIC's action follows its decision to cancel XTrade's Australian Financial Service (AFS) license on April 26 2024 due to persistent breaches of financial services laws and misconduct spanning from June 2018 to September 2022.

ASIC's investigation revealed significant shortcomings at XTrade under the leadership of Mr Zakhaim and Mr Anderson, including inadequate management of conflicts of interest and supervision of representatives. These deficiencies contributed to aggressive sales tactics by XTrade's representatives towards Australian clients, who were often persuaded to trade in contracts for difference (CFDs) and foreign exchange contracts (FX contracts) under misleading circumstances.