ASIC’s Restrictions on Retail CFDs Forces Invast Global to Revise Account Structure

Prime brokerage services provider Invast Global​ has posted a notice on its website, saying that "in response to the implementation of the ASIC Product intervention Order (CFDs) 2020/986, Invast Global has implemented a new account structure, incorporating "Retail", "Sophisticated" and "Wholesale" account classifications".

The following table outlines the different account types Invast Global implemented.

To commence trading, Invast Global clients must now complete the relevant investor assessment during onboarding.

For the Account types above, all of a client's named Directors, Trustees or account holders need to be approved as Sophisticated or Wholesale Investors in order for the account to be classified as a Sophisticated or Wholesale account.

Clients can only be classified as a single investor type at any point in time. By contacting the company's Client Coverage team to submit a request, clients can opt-out from being classified as a Sophisticated client and return to retail client status at any time.

As Fazzaco reported previously, the Australian Securities & Investments Commission (ASIC) has issued the Product Intervention Order, imposing conditions on the issue and distribution of contracts for difference (CFDs) to retail clients, on 23 October 2020. ASIC's Restrictions on Retail CFDs have come into effect​ from 29 March 2021.

Prior to the commencement of the order, many brokers, including OANDA, eToro, Rakuten Securities Australia, FP Markets and CMC Markets, have published announcement​ reminding their Australian clients of new rules for CFD trading.