Latest Posts
TechFinancials sells OptionFair binary options brand for $400K as it focuses on Blockchain and Crypto technologiesOSC denied in attempt to shut down equities trading platform Omega Securities ahead of hearingFoster Stockbroking called out by ASIC for IPO conflict of interestPepperstone adds crypto trading in Bitcoin, Ethereum, Dash and LitecoinEthereum with a new, all-time high of $400New Zealand based FX broker Fullerton Markets gets FMA warning for AML issuesFCA warns against NBLFX/ Niru Bala Limited / Numex Foreign Exchange Corporation clone firmExclusive: UBS FX executives leave to set up broker consultancy service FinoesisNasdaq Dubai and Nairobi Securities Exchange sign MoU to support creation of Sukuk sector in KenyaHSBC issues first corporate sustainable development bondFCA warns against MBQ International Incorporated firmIOSCO Good Practices for the Termination of Investment Funds seek to protect investorsChartIQ integrates Trading Central on WebTrader for MT4InvestCloud announces Freetrade as the first startup in its UK innovation centerFrench AMF appoints Moad Fahmi as Director of Fintech and InnovationExclusive: Former City Index COO Simon Bird joins Ikon Finance ahead of institutional FX relaunchEbury opens office in Brussels, second in BeneluxCySEC to suspend its Fast Track Examination CIF licensing schemeHong Kong SFC fines a former account executive of Fulbright Securities Ltd and bans him for lifeSwissquote launches first actively managed Bitcoin Certificate traded on SIX Swiss Exchange

ASIC to add reporting requirements to Australia’s new Retail Forex client money law

Australia forex CFD brokers

Australia financial regulator ASIC has issued a consultation paper, asking for feedback on new proposed rules requiring brokers to reconcile and report all retail client money held on a daily, monthly, and yearly basis.

Some background…

As we reported back in March, Australia’s parliament recently passed the Treasury Laws Amendment (Measures No 1) Bill 2016, known more commonly as the Retail Client Money law. The new law, which although already passed only goes into effect in April 2018, changes the rules as to what ASIC licensed retail brokers offering over-the-counter derivatives products (read: Forex Brokers) can and cannot do with client money.

Until now, Australia has been one of the few properly-regulated countries which allowed Retail Forex brokers to make use of client money for things such as working capital and even marketing budget. However the new legislation closes that loophole, with all client money to now be fully segregated and held in trust.

As part of the new legislation, ASIC was given the mandate to make new client money reporting rules, to ensure greater transparency and to help confirm and enforce that money was actually being segregated.

So what is ASIC proposing?

ASIC’s client money reporting rule proposals follow two main tiers:

1. Daily Reconciliation. Each AFS licensee must perform a daily and monthly reconciliation of the amount of reportable client money it has recorded in its records against the amount actually held in the client money account. The reconciliations must be done per-account, and in total. The licensee must notify ASIC if it fails to perform a reconciliation in accordance with the client money reporting rules, or if it identifies a discrepancy.

2. Monthly and Annual Reports to ASIC. Each AFS licensee must complete and give to ASIC within 10 business days of the end of each calendar month an accurate reconciliation of the amount of reportable client money held in a client money account for each client, and the corresponding amount recorded in the licensee’s records, as well as an aggregate reconciliation.

As far as timing goes, ASIC is asking for feedback on its proposals by August 8, i.e. in four weeks. ASIC plans to release its feedback including the finalized rules in October 2017, with the new rules to take effect on April 4, 2018, the same date on which the client money handling law comes into effect.

The full ASIC consultation paper can be sen here (pdf).

Related News

  • so where can one go to comment on said rules?

    • Blair Russel

      you respond to ASIC just like it says in the proposal moron. can’t you read !.

      You seem to just comment on separate for the sake of commenting, pull your head in and comment when you can add value, you look like a moron otherwise.


ASIC to add reporting requirements to Australia's new Retail Forex client money law


Send this to a friend

Subscribe to LeapRate
Fill out the form below for more information
for lising in LeapRate's Forex Yellow Pages

Please enter the company name, email address to reach you and phone # (optional):

Please fill out the message field to the right for any questions or special inquiry: