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#1 21-04-2019 19:00:13

johnedward
Admin & Trader
From: Paris - France
Registered: 21-12-2009
Posts: 2580
Website

Australian brokers are resisting against the ASIC

Australian brokers are resisting against the ASIC


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This week is a significant one for the Australian FX and CFD trading sector. At the beginning of the month, the national congress approved the Financial Products Intervention Act and ASIC has started gathering info on the nation's regulated brokerages.

The nation's Supervisory Authority then told brokers that some of them may be in violation of foreign regulations. On 5 April, ASIC clarified things with the brokers.

Brokers must implement other actions

Australian brokerages have been notified that they must stop marketing trading services to citizens of other countries unless they have an operational licence in these nations. Simply put, brokers that don't carry an EU authorisation can't sell trading services to EU clients. 

In addition, the ASIC is asking brokers to close open trades of foreign traders by the end of next month unless they are authorised to operate in the relevant country. 

This strict requirement reminds us of Gooogle's position on ads. Last year, the company reported that it had to examine countries on a case by case basis to see if ads were to be allowed.

According to some reports, brokers are looking for top-shelf counsel to see what they can do. Some professionals on the inside say that these latest ASIC requirements are simply illegal and should be ignored.

The legal struggle against the ASIC agency will probably be lengthy and expensive is likely to be long and costly. However, a few Aussie brokerages said they would diversify by registering for licenses in Cyprus (CySec agency).

The steps taken by Australia's regulatory agency appear sudden to most traders, but they were expected by insdiers.

An answer is required

Brokerages must answer to the request by the end of this month, and they must describe what they've done to turn away foreign traders. In addition, each FX company must also report the number of clients it has in each country as of the beginning of next month. It would appear that Europe and China are the main targets of this crackdown effort. Companies that fail to adhere to this request may be subject to disciplinary measures or fines. 

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