ASIC Moves Toward a "Conduct + Structure" Model, Brokers Must Adapt Accordingly

This year has seen a continued tightening of regulatory oversight across global financial markets. In our previous article, we explored how the European Securities and Markets Authority (ESMA) is pushing forward reforms under the MiFID II framework​. Today, we turn our attention to Australia, where the Australian Securities and Investments Commission (ASIC) has stepped up enforcement efforts in 2025.

Since May, ASIC has released a series of important announcements, ranging from updates to CFD product restrictions to a sweeping qualification check for financial advisers, and finally to new reporting requirements for derivative transactions. Together, these changes form a "conduct + structure" model that is rapidly taking shape. For affected brokers - particularly those offering contracts for difference (CFDs) or personalised financial advice - these changes demand close attention. Each policy directly impacts product design, personnel management, and system infrastructure. Any misstep could bring brokers dangerously close to compliance breaches.

CFD Product Intervention Order Extended: Structural Compliance Is Key

In May, ASIC announced the extension of its CFD product intervention order for another five years, maintaining key requirements including: Maximum leverage limits (e.g., 30:1 for major forex pairs); mandatory margin close-out protections; negative balance protection, and a ban on promotional incentives. For brokers, this extension translates into three key compliance obligations:

• Platform Adjustments: Implement robust leverage control mechanisms to prevent workarounds that allow clients to bypass capped limits.

• Risk Management: Ensure all trading strategies align with ASIC's leverage ceilings and automatic liquidation thresholds.

• ​Marketing Compliance: Prohibit the use of bonuses, incentives, or giveaways in promotional campaigns. All advertising and client acquisition strategies must remain regulatory-proof.

This is not just a technical issue - it goes to the heart of regulatory identity. A broker offering CFDs in the Australian market must ensure its entire service chain - from onboarding to trade execution to marketing - meets the requirements of the intervention order. Otherwise, the firm could face product restrictions or even exclusion from the Australian market.

Countdown to 2026: Adviser Qualifications Under Tight Scrutiny

In addition to structural controls, ASIC has reinforced its focus on the conduct of individual advisers. Specifically, by January 1, 2026, all relevant providers - those offering retail financial advice or information - must hold compliant qualifications.

In May, ASIC conducted a second random audit of 15,610 advisers. The findings were concerning:

Only 6,426 had certified qualifications; 4,580 met the criteria through the "Experienced Provider Pathway"; A total of 4,604 did not meet any qualification requirements, with 1,844 of these potentially eligible but not yet declared under the experience pathway.

This audit revealed widespread issues: incomplete academic qualifications, assistants incorrectly recorded as advisers, and inaccurate registration data. ASIC has made it clear - submitting false information or failing to update adviser records within 30 business days constitutes a serious breach of the law. From 2026 onward, ASIC will rely heavily on the Financial Adviser Register to verify licensing eligibility.

Compliance Is Not a Cost - It's Your Moat

Taken together, ASIC's new measures require brokers to build a closed-loop compliance system involving risk assessments, systems upgrades, credential tracking and validation, corrective training, ongoing monitoring and internal controls. This is about moving from formal to substantive compliance. Without it, brokers risk licence suspension, market exclusion, fines, and reputational damage.

What stands out in ASIC's 2025 regulatory push is a shift in emphasis - from regulating products and personnel to also scrutinising data flows, internal processes, and business structures. For modern brokers, compliance is no longer a bolt-on - it must become a strategic core.

Ultimately, the ability to turn regulatory demands into drivers of business resilience is what will separate leading brokers from the rest. In this environment, compliance is not just a cost - it is your moat.