Tag: ASIC

September 06, 2023 BY Elizabeth Anderson

ASIC tightens high-risk and OTC derivatives product distribution

A recent targeted review, which examined the DDO practices of sample financial issuers, found most retail clients lost money when trading CFDs. The ASIC deputy chair, Karen Chester, said:  ASIC is disappointed that some high-risk retail product issuers have changed little in response to their design and distribution obligations (DDO).  DDO requires companies to design…

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August 04, 2023 BY Alan Sayer

ASIC lodges federal court case against eToro’s CFDs

The financial watchdog questions the suitability of eToro’s contract-for-differences (CFD) target market. A CFD is a leveraged derivative contract that allows a trader to invest in the value changes of underlying assets. ASIC alleges that eToro’s CFD market is too wide considering the high-risk and volatile nature of this trading niche, where most lose their…

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FTX
July 19, 2023 BY Steffy Bogdanova

ASIC cancels FTX’s license in Australia

Additionally, the cancellation of the company’s AFS license does not affect requirements stemming from its membership with the Australian Financial Complaints Authority, and to have arrangements for compensating retail clients. The official announcement also detailed that John Mouawad, Scott Langdon and Rahul Goyal of KordaMentha were appointed as voluntary administrators of FTX Australia and its…

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ASIC ban
July 06, 2023 BY Steffy Bogdanova

Australian broker Openmarkets pays $4.5 million penalty

On 2,011 instances, this Openmarkets client executed bid-and-ask orders simultaneously for the same security at the same price. The ASIC stated that the broker should possess a suitable system to detect the possibility of these orders being placed with the intention of manipulating trading prices or creating a deceptive impression of active trading. Curiously, the…

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June 02, 2023 BY Alan Sayer

ASIC Issues DDO Stop Order Against Mitrade Global

ASIC's concerns were raised by a retail investor questionnaire that Mitrade used as a key step for compliance with its obligations. The questionnaire gave prompts to a prospective retail investor to review any "unacceptable answer" that would indicate that the investor was not likely to be in the target market for the products. They said…

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May 30, 2023 BY Steffy Bogdanova

ASIC extends financial adviser registration deadline

ASIC stated: The registration requirement is new. It is separate, and in addition to, the pre-existing requirements for an AFS licensee to appoint a relevant provider to the Financial Advisers Register after they have been authorised. Provisional Relevant Providers cannot be registered. The requirement for registration of financial advisers was introduced in 2021 in response…

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Saxo Markets Australia reduces prices on US and ASX equities
May 18, 2023 BY Steffy Bogdanova

ASIC stop orders revoked as Saxo Capital Markets amends TMDs

ASIC found Saxo's TMDs for derivative products to be inappropriate, particularly concerning retail clients who use CFDs as a significant part of their investment portfolio, clients with investment timeframes of up to one year or up to three years, and specific instruments sought by retail clients for growth and income. CFDs are derivative contracts with…

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April 06, 2023 BY Steffy Bogdanova

Binance asks ASIC to cancel its AFS license

The Aussie regulator has been conducting a focused evaluation of Binance’s financial services business in Australia, focusing on the categorisation of retail and wholesale consumers. ASIC issued a hearing notice on 29 March to assess whether to revoke or suspend the AFS licence held by Oztures Trading Pty Ltd. ASIC Chair Joe Longo said: It…

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ASIC ban
March 09, 2023 BY Steffy Bogdanova

ASIC stops Interactive Brokers from issuing SYEP derivatives to retail investors

The regulator stated in the official announcement: ASIC made the interim orders to protect retail investors from acquiring SYEP Derivatives where they may not be suitable for their financial objectives, situation or needs. ASIC is also concerned that the PDS is defective. According to ASIC, Interactive Brokers violated the regulations regarding TMD of SYEP Derivatives…

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