ASIC Commissioner Cathie Armour said:
Source LinkedIn
Binary options’ product characteristics make them incompatible with investment or risk management use by retail clients. ASIC’s product intervention order will protect retail investors from these harmful products at a time of heightened vulnerability.
According to the Commission, retail clients’ net losses from trading binary options are estimated at around $490 million in 2018. Since then, the market in Australia has reduced significantly in size after ASIC issued a warning providing unlicensed or unauthorised services to clients located in several foreign jurisdictions in April 2019. In 2019, the estimated client net losses are over .7 million.
The binary options ban follows an intervention order by ASIC placing conditions on the distribution of CFDs to retail clients from 29 March 2021. The intervention order on CFDs will be in effect for 18 months after which time it may be extended or made permanent.
