The regulator said today it is recalibrating its priorities to respond to the pandemic.
The Australian Securities and Investments Commission (ASIC) announced this Monday that it will be changing its priorities amid the current coronavirus pandemic, and will refocus its regulatory efforts to deal with challenges created by the global crisis.
The Australian regulator will be refocusing its efforts until at least the 30th of September 2020. During this time, it will be dedicating its resources to responding to the pandemic, and address situations where there is the risk of significant consumer harm, serious breaches of the law, risks to market integrity and time-critical matters.
Because of this, the authority has immediately suspended a number of near-term activities which it deems are not time-critical. This includes consultation, regulatory reports, and reviews, such as the ASIC report on executive remuneration, updated internal dispute resolution guidance, and a consultation paper on managed discretionary accounts.
"ASIC is committed to working constructively and pragmatically with the firms we regulate, mindful they may encounter difficulties in complying with their regulatory obligations due to the impact of COVID-19," the regulator said in today's statement.
Following today's announcement from ASIC, within the foreign exchange (Forex) and contracts for difference (CFD) space, one question has arisen - will the regulator postpone the implementation of its leverage restrictions?
As Finance Magnates reported, in August of last year, the agency released its consultation paper on its proposed product intervention measures. Unlike ESMA, ASIC said that it would not distinguish between major and minor currency pairs. Instead, the watchdog proposes a single leverage ratio limit for all currency pairs 20:1.
For equity indices, ASIC suggests a ratio of 15:1, commodities excluding gold 10:1, Gold 20:1, crypto-assets 2:1, and equities 5:1. The implementation of these measures has so far been reportedly delayed as the Aussie watchdog received a high volume of responses to its consultation paper.
Speaking to Finance Magnates, Sophie Gerber, a Director at Sophie Grace and TRAction Fintech, said: "The media release from ASIC makes it clear that they will be sending updates to affected persons in relation to specific consultations that had been running prior to the coronavirus outbreak."
"Therefore we would expect an email to come through to recipients of the Market Supervision mailing list with any news about the CFDs conslutation paper. At this stage, we haven't seen any guidance from ASIC regarding the implementation of the leverage restrictions. It is however possible that ASIC may stay silent on this particular consultation since it has been so contentious."
Is now the right time for regulatory change?
When asked whether now was the right time for the Australian regulator to implement the regulatory changes, Gerber explained: "The product intervention proposal has already been highlighted as having a significant negative impact on tax revenues for the Australian economy, with Australian CFD providers being large taxpayers and stable employers. Offshoring clients to other jurisdictions means less tax revenue for the Australian Government and a shift in jobs.
"With the Australian government's expensive stimulus packages for shielding the economy from coronavirus continuing to be announced, it would seem sensible for the Treasury and regulators to delay measures which will reduce tax earnings for the government."
The Australian Securities and Investments Commission (ASIC) announced this Monday that it will be changing its priorities amid the current coronavirus pandemic, and will refocus its regulatory efforts to deal with challenges created by the global crisis.
The Australian regulator will be refocusing its efforts until at least the 30th of September 2020. During this time, it will be dedicating its resources to responding to the pandemic, and address situations where there is the risk of significant consumer harm, serious breaches of the law, risks to market integrity and time-critical matters.
Because of this, the authority has immediately suspended a number of near-term activities which it deems are not time-critical. This includes consultation, regulatory reports, and reviews, such as the ASIC report on executive remuneration, updated internal dispute resolution guidance, and a consultation paper on managed discretionary accounts.
"ASIC is committed to working constructively and pragmatically with the firms we regulate, mindful they may encounter difficulties in complying with their regulatory obligations due to the impact of COVID-19," the regulator said in today's statement.
Following today's announcement from ASIC, within the foreign exchange (Forex) and contracts for difference (CFD) space, one question has arisen - will the regulator postpone the implementation of its leverage restrictions?
As Finance Magnates reported, in August of last year, the agency released its consultation paper on its proposed product intervention measures. Unlike ESMA, ASIC said that it would not distinguish between major and minor currency pairs. Instead, the watchdog proposes a single leverage ratio limit for all currency pairs 20:1.
For equity indices, ASIC suggests a ratio of 15:1, commodities excluding gold 10:1, Gold 20:1, crypto-assets 2:1, and equities 5:1. The implementation of these measures has so far been reportedly delayed as the Aussie watchdog received a high volume of responses to its consultation paper.
Speaking to Finance Magnates, Sophie Gerber, a Director at Sophie Grace and TRAction Fintech, said: "The media release from ASIC makes it clear that they will be sending updates to affected persons in relation to specific consultations that had been running prior to the coronavirus outbreak."
"Therefore we would expect an email to come through to recipients of the Market Supervision mailing list with any news about the CFDs conslutation paper. At this stage, we haven't seen any guidance from ASIC regarding the implementation of the leverage restrictions. It is however possible that ASIC may stay silent on this particular consultation since it has been so contentious."
Is now the right time for regulatory change?
When asked whether now was the right time for the Australian regulator to implement the regulatory changes, Gerber explained: "The product intervention proposal has already been highlighted as having a significant negative impact on tax revenues for the Australian economy, with Australian CFD providers being large taxpayers and stable employers. Offshoring clients to other jurisdictions means less tax revenue for the Australian Government and a shift in jobs.
"With the Australian government's expensive stimulus packages for shielding the economy from coronavirus continuing to be announced, it would seem sensible for the Treasury and regulators to delay measures which will reduce tax earnings for the government."
XTB Acquires ISA License in The UK, New Products Planned for Autumn
Network, Learn, Grow | FMAS:24
Network, Learn, Grow | FMAS:24
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/company/financemagnates/
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Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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