ASIC issues retail OTC warning

ASIC/Australian-Securities-and-Investment-Commission/OTC/derivatives/OTC-derivatives/Cathie-Armour/afs-licensees/Australian-financial-services-licence/

5 June 2019
| By Mike |
image
image
expand image

Australian retail Over the Counter (OTC) derivatives traders have been placed on notice about any claims they may be making about the scope of their Australian Financial Services Licenses.

The Australian Securities and Investments Commission (ASIC) has placed the OTC traders on notice after having previously warned them that they may be dealing with overseas investors illegally.

In an address to a Sydney forum, ASIC commissioner, Cathie Armour noted that regulators in many jurisdictions including Europe, Japan, North America and China had restricted or prohibited the provision to retail investors of certain OTC derivatives.

She also noted that because the same restrictions did not exist in Australia, there was a risk of regulatory arbitrage.

“Recently we publicly warned Australian issuers that they may be dealing with overseas investors illegally and to cease any non-compliant activities immediately,” Armour said. “There may be consequences overseas for potential breaches of overseas law, but in any event, ASIC will consider whether breaching overseas law is consistent with obligations under Australian law to provide services ‘efficiently, honestly and fairly’.”

She said ASIC was also concerned some AFS licensees may be making misleading or deceptive statements about the scope or application or effect of an AFS licence.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

1 month 3 weeks ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months ago

Entireti has unveiled the new name for the AMP financial advice businesses that it acquired last year....

3 weeks 6 days ago

A Sydney financial adviser has been permanently banned from providing any financial services, with the regulator deriding his “lack of integrity, trustworthiness and prof...

2 weeks 5 days ago

Minister for Financial Services, Stephen Jones, has provided further information about the second tranche of the Delivering Better Financial Outcomes (DBFO) reforms....

1 week 4 days ago

TOP PERFORMING FUNDS