Who must comply with AFSL with derivative authorisations (margin lending + CFD + binary)?

AFSL holders issuing OTC derivatives to retail clients.

What is the maximum penalty for AFSL with derivative authorisations (margin lending + CFD + binary)?

Civil penalties to financial services maximum

What evidence is required for AFSL with derivative authorisations (margin lending + CFD + binary)?

AFSL authorisation; product design conformance; client onboarding + suitability records.

Hold AFSL with derivative authorisations (margin lending + CFD + binary) (2026)

Summary

Margin lending + CFDs + binary options for retail clients have been subject to ASIC product intervention orders (binary options banned 2022; CFD leverage caps + restrictions; margin lending tighter financial assistance rules). Issuers must hold appropriate AFSL authorisations + observe intervention orders.

Enforced by

ASIC

Source legislation

corporations act 2001

Industries

fintech

Topics

financial-servicesderivativesproduct-intervention

Related obligations

CWLTHComply with AFSL general obligations (s 912A)AFSL holders must do all things necessary to ensure financial services are provided efficiently, honestly and fairly.
CWLTHReport reportable situations to ASIC within 30 days (RG 78)AFSL/ACL holders must report reportable situations within 30 calendar days of becoming aware.
CWLTHComply with Design and Distribution Obligations (DDO)Issuers and distributors of retail financial products must have a Target Market Determination (TMD) and distribute consistently with it.
CWLTHMaintain adequate PI insurance (AFSL holders, RG 126)AFSL holders providing financial services to retail clients must hold adequate professional indemnity insurance.
CWLTHBan on conflicted remuneration (FOFA)AFSL holders and representatives must not accept conflicted remuneration in connection with retail financial product advice.
CWLTHMaintain AFCA membership (mandatory external dispute resolution)AFSL + ACL holders must be members of AFCA — sole AU EDR scheme.

Frequently asked questions

Who must comply with AFSL with derivative authorisations (margin lending + CFD + binary)?: AFSL holders issuing OTC derivatives to retail clients.
What triggers AFSL with derivative authorisations (margin lending + CFD + binary)?: Issuing covered derivatives.
When is AFSL with derivative authorisations (margin lending + CFD + binary) due?: Continuous.
What is the maximum penalty for AFSL with derivative authorisations (margin lending + CFD + binary)?: Civil penalties to financial services maximum
What evidence is required for AFSL with derivative authorisations (margin lending + CFD + binary)?: AFSL authorisation; product design conformance; client onboarding + suitability records.