Did you know Australian CFD & FX brokers can use your money to hedge their exposures?
Current legislation in Australia allows an Australian Financial Services Licensee dealing in CFDs or FX to use client money to meet obligations incurred by the licensee in connection with margining, guaranteeing or settling dealings by the licensee, including dealing on behalf of people other than the client.
Issues around the use and segregation of client funds has been at the forefront of the recent collapses of Australian brokers, including BBY Limited, MF Global Australia, Opes Prime and GTL Trade Up.
Segregated client money is held entirely separate from the licensee’s own money, ensuring that in the event of default of the licensee, client funds will be returned to the clients rather than being treated as a recoverable asset by general creditors of the licensee.
Every G10 country aside from Australia has banned the use of client funds relating to derivatives for hedging purposes.
The Australian CFD and FX Forum has been rallying the Australian Government to address this issue since 2008. We now need your support. You can help us by signing this petition which will be sent to the office of Hon Kelly O’Dwyer MP (Assistant Treasurer) to show the Government that the investment community wants immediate action on this issue.
We will gather as many names as possible to present the petition to the office of the Assistant Treasurer Kelly O’Dwyer, whilst continuing to lobby Government for change.
Your funds will continue to be at risk whilst you are investing in a CFD or FX provider who is not fully segregating client money.
Encourage others to sign-up! We need as much support as possible.
So far, we have..
Continually raising industry standards
If you have an enquiries you can contact the Australian CFD & FX Forum directly via email or through the website.