ASIC Makes “Reporting Misconduct” a Priority: An Alarm for CFD Brokers?

The Australian financial market regulator has outlined its enforcement priorities for 2026, which include “financial reporting misconduct, including failure to lodge financial reports.” Although the agency did not specifically mention contracts for differences (CFD) brokers, the focus could have a significant impact on the retail trading industry.

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Regulatory Priorities

The Australian Securities and Investments Commission (ASIC) publishes its enforcement priorities each year, offering an overview of the regulator's key focus areas.

“We are continuing to deliver strong, visible, and active enforcement outcomes,” said ASIC Deputy Chair Sarah Court, stressing that the priorities are designed to protect consumers from financial harm and maintain the integrity of the country’s financial markets.

Other priority areas include poor private credit practices and failures in claims and complaint handling by insurers.

Related: ASIC Prohibits CFDs “Margin Discounts” - How Shall Brokers Prepare?

The regulator has not previously made financial reporting misconduct a priority, at least since 2023.

“We’re doing more investigations, taking more matters to court, and securing record penalties,” Court added. “In the last 12 months, we’ve doubled the number of new investigations and nearly doubled the number of new matters filed in court. We’ve also worked hard to increase our criminal prosecutions and have seen lengthy sentences imposed for financial fraud offences.”

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Australia – A Major Market for CFD Brokers

Australia is a key market for CFD brokers. While many brokers, including some major global brands, are homegrown, several foreign firms also maintain a strong presence in the country.

Over the years, ASIC has imposed strict regulations on the CFD industry, including leverage restrictions similar to those in Europe. In late 2023, the regulator revealed that seven CFD brokers operating in Australia—Capital.com, CMC Markets, Eightcap, IG, Pepperstone, Saxo Markets, and City Index—had breached local leverage rules. They were ordered to pay a combined AU$4.3 million in compensation to more than 1,500 retail clients.

Earlier this year, ASIC also announced plans to ease certain mandatory reporting requirements for licensed entities, particularly those involving breach reporting obligations.