Government moves to protect client monies

27 March 2017: The CFD & FX Forum, whose member Firms represent the majority of trading volumes, has strongly welcomed today’s parliamentary passage of a Government bill that introduces significant protection and reform for client monies in the contracts for difference (CFD) and foreign exchange (FX) sectors. Schedule 5 of the Treasury Laws Amendment (2016 Measures No. 1) Bill 2016 amends the Corporations Act to provide greater protection for retail client money and property held by financial services licensees in relation to over-the-counter derivative products such as CFD and FX contracts. These amendments align the Australian client money regime with community expectations regarding the level of protection that should be afforded to retail consumers of complex financial products and services. Schedule 5 also allows for ASIC to have greater oversight of the sector.  ASIC may, by…

Policy Paper: Enhanced Protection of Client Money – PDF Download

In October 2015, the Government, as part of a wider response to its root and branch examination of Australia’s financial system (the Inquiry), announced that it would develop legislative amendments to improve protections for client monies held in relation to derivatives.1 The Government noted that improvements were needed to ensure that investors’ monies are adequately protected when held by intermediaries.   To read the Policy Paper on the enhanced protection of client money Click Here

CFD & FX Forum welcomes Government commitment to reform and improve protection of client monies
The Australian CFD & FX Forum welcomes today’s announcement of the Government’s intent to develop legislative amendments to improve protections for client monies held in relation to derivatives by the end of 2015. Forum Co-Founder Tamas Szabo of IG Markets said, “This is good news for both investors and Australia’s international standing as a well-regulated financial centre.
Enhancing your investment strategy
Article discussing how the CFD & FX Forum is fighting to change the legal conditions that led to the MF Global collapse and how the CFD industry can improve to better protect investors. - (external link)
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