ASIC Continues Ongoing Fight with Malpractice in the Financial Markets
Thursday,21/08/2014|05:29GMTby
George Tchetvertakov
Market regulation operates on a self-regulatory model, leaving ASIC no choice but to play cat-and-mouse with market participants. With workload remaining elevated ASIC is pushing for dialogue rather than court dates
The latest Market Supervision Report conducted by ASIC, the Australian financial markets regulator, details the specific actions conducted by the agency in their attempt to supervise and regulate financial firms in Australia.
The 405 ASIC Supervision of Markets and Participants: January-June 2014 report published today paints a vivid picture of the day-to-day activities carried out by ASIC as the agency tries to reduce the amount of ‘breaches’ of Australia’s Corporations Act 2001 allowed by regulated firms.
A statistical summary of ASIC’s activities in the first 6 months of 2014 include:
5 significant enforcement outcomes
8 infringement notices issued by the Markets Disciplinary Panel
21 matters referred for further investigation
17,091 trading alerts
122 market inquiries
35 risk-based assessment visits
55 participant compliance reviews
17 industry presentations.
Other Notable Highlights
The 'ASIC Market Integrity Enforcement' team typically had over 80 matters under investigation at any one time. As part of these investigations, ASIC conducted 66 formal interviews with persons of interest, issuing 326 notices to obtain information. The agency executed 4 search warrants in partnership with the Australian Federal Police.
ASIC Commissioner, Cathie Armour, praised the agency’s efforts saying, “The impact of ASIC’s early intervention program should not be underestimated." Ms. Armour was also supportive of the self-regulatory model adopted by ASIC whereby financial firms are encouraged to regulate their own activities via clear guidelines and objectives prescribed by ASIC, adding, “By engaging with market participants about inappropriate conduct or poor compliance practices before they manifest in a breach, we can prevent potential damage to market integrity and consequential investor losses."
In terms of big scalps, the report mentions the recent enforcement outcome relating to Newcrest Mining for contravening its continuous disclosure obligations and leading to a $1.2 million penalty by the Federal Court. The report states the outcome was “significant for investor confidence” and currently stands as the highest civil penalty awarded in Australia for a continuous disclosure matter. The conviction was obtained just over 12 months after the relevant conduct occurred.
In her comments, Ms. Amour was keen to make Newcrest an example for the wider market saying: “The statement of facts in the Newcrest matter provides useful guidance for listed companies on the risks of selective disclosure and the care that needs to be taken when briefing analysts."
The report also highlights ‘future areas of focus’ for the regulator for the forthcoming 6 months. The three stated areas of focus are correcting deficiencies in the treatment of confidential information by listed companies, suspicious activity reporting and Execution of orders by designated trade representatives.
Online Trading providers and financial brokers should take note of the latter as Managed accounts operated under Power of Attorney agreements by third parties has been a significant growth area for most FX and CFD brokers not just in Australia but worldwide. Money managers have become a staple feature of the retail trading industry assisted by effective technology and easier market accessibility. The popularity of managed accounts, ‘copy trading’ services, automated strategies, signals and social trading has risen significantly and it would appear that ASIC has not ignored this market trend.
The latest Market Supervision Report conducted by ASIC, the Australian financial markets regulator, details the specific actions conducted by the agency in their attempt to supervise and regulate financial firms in Australia.
The 405 ASIC Supervision of Markets and Participants: January-June 2014 report published today paints a vivid picture of the day-to-day activities carried out by ASIC as the agency tries to reduce the amount of ‘breaches’ of Australia’s Corporations Act 2001 allowed by regulated firms.
A statistical summary of ASIC’s activities in the first 6 months of 2014 include:
5 significant enforcement outcomes
8 infringement notices issued by the Markets Disciplinary Panel
21 matters referred for further investigation
17,091 trading alerts
122 market inquiries
35 risk-based assessment visits
55 participant compliance reviews
17 industry presentations.
Other Notable Highlights
The 'ASIC Market Integrity Enforcement' team typically had over 80 matters under investigation at any one time. As part of these investigations, ASIC conducted 66 formal interviews with persons of interest, issuing 326 notices to obtain information. The agency executed 4 search warrants in partnership with the Australian Federal Police.
ASIC Commissioner, Cathie Armour, praised the agency’s efforts saying, “The impact of ASIC’s early intervention program should not be underestimated." Ms. Armour was also supportive of the self-regulatory model adopted by ASIC whereby financial firms are encouraged to regulate their own activities via clear guidelines and objectives prescribed by ASIC, adding, “By engaging with market participants about inappropriate conduct or poor compliance practices before they manifest in a breach, we can prevent potential damage to market integrity and consequential investor losses."
In terms of big scalps, the report mentions the recent enforcement outcome relating to Newcrest Mining for contravening its continuous disclosure obligations and leading to a $1.2 million penalty by the Federal Court. The report states the outcome was “significant for investor confidence” and currently stands as the highest civil penalty awarded in Australia for a continuous disclosure matter. The conviction was obtained just over 12 months after the relevant conduct occurred.
In her comments, Ms. Amour was keen to make Newcrest an example for the wider market saying: “The statement of facts in the Newcrest matter provides useful guidance for listed companies on the risks of selective disclosure and the care that needs to be taken when briefing analysts."
The report also highlights ‘future areas of focus’ for the regulator for the forthcoming 6 months. The three stated areas of focus are correcting deficiencies in the treatment of confidential information by listed companies, suspicious activity reporting and Execution of orders by designated trade representatives.
Online Trading providers and financial brokers should take note of the latter as Managed accounts operated under Power of Attorney agreements by third parties has been a significant growth area for most FX and CFD brokers not just in Australia but worldwide. Money managers have become a staple feature of the retail trading industry assisted by effective technology and easier market accessibility. The popularity of managed accounts, ‘copy trading’ services, automated strategies, signals and social trading has risen significantly and it would appear that ASIC has not ignored this market trend.
iFOREX Adds Saudi and South Korean Equity CFDs as IPO Is Delayed
Executive Interview | Charlotte Bullock | Chief Product Officer, Bank of London | FMLS:25
Executive Interview | Charlotte Bullock | Chief Product Officer, Bank of London | FMLS:25
In this interview, we sat down with Charlotte Bullock, Head of Product at The Bank of London, previously at SAP and now shaping product at one of the sector’s most ambitious new banking players.
Charlotte reflects on the Summit so far and talks about the culture inside fintech banks today. We look at the pressures that come with scaling, and how firms can hold onto the nimble approach that made them stand out early on.
We also cover the state of payments ahead of her appearance on the payments roundtable: the blockages financial firms face, the areas that still need fixing, and what a realistic solution looks like in 2026.
In this interview, we sat down with Charlotte Bullock, Head of Product at The Bank of London, previously at SAP and now shaping product at one of the sector’s most ambitious new banking players.
Charlotte reflects on the Summit so far and talks about the culture inside fintech banks today. We look at the pressures that come with scaling, and how firms can hold onto the nimble approach that made them stand out early on.
We also cover the state of payments ahead of her appearance on the payments roundtable: the blockages financial firms face, the areas that still need fixing, and what a realistic solution looks like in 2026.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25
Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25
In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity.
Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity.
Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions.
We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
He closes with a clear message: fraud is scaling, and so must the tools that stop it.
In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions.
We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
He closes with a clear message: fraud is scaling, and so must the tools that stop it.
Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
