ASIC Causing Apprehension for CFD and FX Brokers in 2017

The product intervention powers of the Australian Securities and Investments Commission (ASIC) under the Financial Services Inquiry are anticipated to come into effect in late 2017.

Greg Medcraft, the current ASIC Chairman, has advised that ASIC’s focus for 2017 will be on ‘complex products’ such as Contracts for Difference (CFD), and tidying up the financial services industry. Mr Medcraft discussed his views on the proposed powers in an article on the Australian Financial Review dated 2 January 2017 entitled “ASIC’s Greg Medcraft says bank ‘subcultures’ failing to get the message”.

Mr Medcraft said that the powers will give ASIC the ability to ban financial products, increase product disclosure obligations, make amendments to the advertising of products and restrict the distribution of certain financial products.

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