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#1 28-05-2019 11:17:24

johnedward
Admin & Trader
From: Paris - France
Registered: 21-12-2009
Posts: 3068
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First case of reimbursement of foreign traders by an Australian broker

First case of reimbursement of foreign traders by an Australian broker


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IFGM is the Australian nation's 1st brokerage to officially be closing the trading accounts of non-Australian clients and to send them back their money.

This follows a recent press release by the ASIC (Australia Security and Investment Commission): "All trading operations that do not comply with regulations have to stop right now and be reported to the local trading authority."

Following the Australian legislature's approval of a law last month, local brokerages have been told they have to hand over a great deal of information on their non-Australian clients.

End-of-June deadline

Recent demands by Australia's regulatory agency are a sign for brokerages that they have to get the ball rolling in terms of dealing with - and turning away - non-Australian traders. The agency also wants to examine local market data before it decides on its course of action.

In addition, regulators openly stated their negative opinion about the high levels of leverage that local brokers offer to traders.

Right now, many brokers are simply at odds with what to do in the nearby future. This contrasts with the situation in 2018, where Australian licences were heavily sought after due to the rather laxist regulatory environment in Australia. 

A complicated legal environment

Even though things in Australia seem complicated, many local brokers with non-Australian clients are conducting "business as usual" (no pun intended with the classic Australian rock album by Men at Work!). As for IFGM, they've told account applicants that they can only now approve local traders - European traders are denied the possibility of opening an account.

Moreover, money belonging to non-local traders is being wired back to the clients' foreign bank accounts.

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