ASIC calls on retail OTC derivatives issuers to lift standards and address regulatory concerns

ASIC recently undertook a surveillance of the retail OTC derivatives sector, which has an estimated annual turnover of $11 trillion and over 450,000 investors in Australia. ASIC has released Report 579 here in which it identifies sector-wide issues with certain practices, including: misleading marketing materials unclear pricing methodologies, particularly around cryptocurrency CFDs inadequate risk management practices including in relation to white labelling inadequate monitoring of counterparties including in the context of hedging arrangements inappropriate referral arrangements which may breach the ban on conflicted remuneration. ASIC has called on issuers to raise industry standards and improve compliance, including by: reviewing and updating their risk management and client money practices assessing whether their arrangements with counterparties and referrers meet their AFS licence obligations. ASIC placed particular focus on the developing market for cryptocurrency CFDs…

Read more detail on Recent Securities Law posts –

This entry was posted in Securities Law and tagged , , , , , , , , , . Bookmark the permalink.

Leave a Reply