ASIC Flags Onboarding and Disclosure Gaps in Nine-Broker Review

ASIC tells firms to narrow high-risk product target markets

The corporate watchdog has issued a notice to entities selling complex or high-risk financial products, saying they must narrowly and appropriately define their target markets as the offerings are unlikely to be suitable for a broad retail audience. Simone Constant, commissioner at the Australian Securities and Investments Commission (ASIC), said the surge in online investing among Australians has made it critical to ensure broader access to fin…

ASIC Warns on Options and Futures After 9-Broker Review

The Australian Securities and Investments Commission has warned that a growing number of online brokers are exposing retail investors to complex and high-risk products without adequately explaining the risks or ensuring those products are suitable for their customers, as the regulator intensifies its scrutiny of Australia's rapidly expanding retail trading market. Following a surveillance of nine online brokers conducted between March and June 2…

ASIC cites risky products, improper onboarding in review of online brokers

The findings follow a targeted ASIC surveillance of nine entities offering short-dated ETOs, futures and fractional shares to retail investors. The post ASIC cites risky products, improper onboarding in review of online brokers appeared first on FX News Group.

ASIC Flags Onboarding and Disclosure Gaps in Nine-Broker Review

The Australian Securities and Investments Commission (ASIC) found product governance, onboarding and disclosure gaps at nine online brokers today (Thursday). The review covered short-dated exchange-traded options, futures and fractional shares sold to retail investors.Five firms improved their compliance practices during the review. Two stopped accepting new options clients while they worked on fixes, one provider later left Australia, and ASIC …