In early December 2016, the United Kingdom’s Financial Conduct Authority (FCA) proposed leverage caps for retail CFD Brokers which will be dependent on the experience of the client. The proposal can be found in the FCA’s Consultation Paper CP16/40 entitled Enhanced Conduct of Business Rules for firms providing contracts for difference products to retail clients, which is open until March 2017. However most CFD brokers in the UK are anticipating that shortly afterwards, it will come into effect.
Following on from the FCA’s announcement, retail CFD brokers felt the effects of the proposed changes almost immediately. Some of the biggest players in the retail CFD industry found their share value dropped by at least 20%.
Now the question that the industry wants answered is, does the Australian Securities and Investments Commission (ASIC) have the power to implement the same leverage restrictions?
Sophie is the director of both Sophie Grace Legal Pty Ltd and Sophie Grace Pty Ltd. Sophie has worked with some of Australia’s largest financial services organisations in compliance, legal and operational roles. She has also worked with small businesses to provide tailored solutions with a strong understanding of business practicalities as well as obligations to regulators.