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ARTICLE · 03 JULY 2019

Product intervention power - regulatory action may be sooner than expected

Colin Biggers & Paisley
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ASIC is setting its sights on risky investments such as binary options, margin FX and contracts for difference (CFDs).

AustraliaFinance and Banking
Hamish Ratten
Hamish Ratten
Toby Blyth
Toby Blyth

In brief - ASIC sets its sights on binary options, margin foreign exchange and contracts for difference

Regulatory action under the new product intervention power may happen sooner than expected.

A summary of the power and law changes are available in our April 2019 article New Design and Distribution Obligations and Product Intervention Powers for Financial Products.

According to an article in The Australian (May 24, 'ASIC closer to clamp on risky investments'), comments from ASIC (the Australian Securities and Investments Commission) at the Stockbrokers and Financial Advisers Association conference indicated that it was thinking really hard about binary options, margin foreign exchange (FX) and leverage in margin FX and CFDs (contracts for difference).

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