ASIC weaponises DDO against eToro

ASIC has commenced its first civil penalty action for contravention of the Design and Distribution Obligations (DDO) regime against online CFD trader eToro.

It is a significant upping of the ante for ASIC's enforcement of the DDO regime. Since its implementation there have been a significant number of product interventions in the form of Interim Stop Order which prevent the product being offered for a specified period on the basis of ASIC's concerns regarding compliance with the DDO regime.

The DDO regime has been one of the most significant reforms of recent years for financial services with implications across the full gamut of product types and FS industry sectors.

And ASIC has not been shy to use what is, on its face a protective regime, as an enforcement tool by intervening in the market.