ACY Securities supports ASIC’s product intervention order
“We welcome ASIC’s long-awaited announcement ensuring greater client protection and we support ASIC’s efforts in implementing robust and proportional regulation in the margin and CFD sector” said ACY Securities executive Justin Pooni
ACY Securities, one of Australia’s leading FX and CFD providers, welcomes ASIC’s Product Intervention Order which was announced today and reported in detail by FinanceFeeds along with a comprehensive analysis.
Justin Pooni, Head of Branding & Communications at ACY Securities said that ACY Securities supports ASIC in its decision to introduce greater protections for clients and shield them from excessive risk.
“We welcome ASIC’s long-awaited announcement ensuring greater client protection and we support ASIC’s efforts in implementing robust and proportional regulation in the margin and CFD sector” said Mr Pooni in a statement this morning.
He went on to say “ACY Securities are of the view that measures introduced to improve customer outcomes will also benefit the CFD industry in supporting brokers who already put customers first. CFD traders should choose their provider carefully and these improvements will create higher barriers to entry into the Australian financial industry so that hopefully only the best brokers remain to serve FX and CFD clients”.
From 29 March 2021, ASIC’s product intervention order will restrict CFD leverage offered to retail clients to a maximum ratio of:
- 30:1 for CFDs referencing an exchange rate for a major currency pair
- 20:1 for CFDs referencing an exchange rate for a minor currency pair, gold or a major stock market index
- 10:1 for CFDs referencing a commodity (other than gold) or a minor stock market index
- 2:1 for CFDs referencing crypto-assets
- 5:1 for CFDs referencing shares or other assets
