ASIC Outlines Monitoring Compliance for CFDs and Binary Options as A Priority

The Australian Securities and Investments Commission (ASIC) has recently released its Corporate Plan 2021–25, outlining their priorities over the next four years to achieve a fair, strong and efficient financial system for all Australians.

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According to the regulator, their work will be guided by a set of external and internal strategic priorities. The external priorities are promoting economic recovery, reducing risk of harm to consumers, supporting enhanced cyber resilience and cyber security and driving industry readiness and compliance with standards set by law reform initiatives.

The internal priorities are enhancing communication and engagement with stakeholders and other regulatory agencies, improving infrastructure and systems, enhancing data and cyber resilience capabilities and nurturing a good workplace environment.

In addition, the regulator also outlines its priorities on the distribution of retail over-the-counter derivatives. The product intervention orders for CFDs and binary options​ which took effect earlier in 2021 are among the foci for the regulator.

Specifically, the regulator will monitor compliance with the contracts for difference and binary options product intervention orders; assess the effectiveness of the orders in reducing harm, areas of possible avoidance, and whether the orders should be extended; and take regulatory action, including enforcement action where warranted, to address misconduct.

“A strong Australian financial system is vital to supporting economic growth and recovery, promoting innovation and enabling Australians to invest for their financial future,”said ASIC Chairman, Joe Longo.”ASIC is committed to ensuring that all of our stakeholders can participate in this system with confidence. I have great faith in our organisation and people as we embark on this important work over the coming years.”