ASIC Reports "High Incidence" of CFD Broker Misconduct
- The Aussie regulator made the comments in its recently published annual report
The Australian Securities and Investments Commission released its annual report for the 2018/19 fiscal year on Thursday.
The report contains a couple of interesting references to the retail trading industry.
First off, it describes the process that led to it canceling the license of AGM Markets in November of last year. Yossef Ashkenazi, the company’s CEO, was also banned from working in financial services for eight years and forbidden from leaving Australia.
According to the report, ASIC asked nine different foreign regulators for help with its investigation into AGM Markets.
That was likely to include Israeli and Cypriot authorities as the broker had ties to both countries.
On a broader level, ASIC’s report also details some of the supervisory measures, focused on the retail trading industry, that the Australian regulator has taken over the past twelve months.
Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term coming
One line in the report will be particularly worrying for retail brokers.
“We continue to respond to a high incidence of misconduct in the retail OTC derivatives sector, involving large client losses,” wrote the regulator.
Why should this be worrying? Well, as most of our readers know, European regulators used client losses as the girder on which to build their own set of Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term-restricting regulations.
ASIC has been making similar noises for the past twelve months. As a result, the report isn’t likely to provide retail brokers with any surprises. It is, however, more evidence that the Aussie regulator is very likely moving towards introducing regulations akin to those now in place across the European Union.
The Australian Securities and Investments Commission released its annual report for the 2018/19 fiscal year on Thursday.
The report contains a couple of interesting references to the retail trading industry.
First off, it describes the process that led to it canceling the license of AGM Markets in November of last year. Yossef Ashkenazi, the company’s CEO, was also banned from working in financial services for eight years and forbidden from leaving Australia.
According to the report, ASIC asked nine different foreign regulators for help with its investigation into AGM Markets.
That was likely to include Israeli and Cypriot authorities as the broker had ties to both countries.
On a broader level, ASIC’s report also details some of the supervisory measures, focused on the retail trading industry, that the Australian regulator has taken over the past twelve months.
Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term coming
One line in the report will be particularly worrying for retail brokers.
“We continue to respond to a high incidence of misconduct in the retail OTC derivatives sector, involving large client losses,” wrote the regulator.
Why should this be worrying? Well, as most of our readers know, European regulators used client losses as the girder on which to build their own set of Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term-restricting regulations.
ASIC has been making similar noises for the past twelve months. As a result, the report isn’t likely to provide retail brokers with any surprises. It is, however, more evidence that the Aussie regulator is very likely moving towards introducing regulations akin to those now in place across the European Union.