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ARTICLE · 31 AUGUST 2023

ASIC's DDO surveillance continues—eToro under fire for inadequate screening test

McMahon Clarke
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ASIC's action against eToro is a reminder for product issuers to ensure that their processes are fit-for-purpose.

AustraliaFinance and Banking
Sean McMahon
Sean McMahon
Sarah Sherman
Sarah Sherman
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In a move highlighting ASIC's continuing surveillance in the design and distribution space, the regulator recently commenced proceedings against eToro Aus Capital (eToro) for using a 'wholly inadequate' screening test to determine whether retail investors fell within the target market of its contract for difference (CFD) product.

Our recent Alert Analysis of ASIC report 762-your DDO health check, outlined the key points of ASIC's report 762 and flagged the importance of product issuers meeting their design and distribution obligations (DDO).

Partner Sean McMahon and lawyer Sarah Sherman explain what you need to know about ASIC's continuing surveillance.

WHAT DO YOU NEED TO KNOW?

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