Hold AFSL with derivative authorisations (margin lending + CFD + binary)
Issuers of OTC derivatives to retail clients face product intervention orders + tightened conditions.
Who must comply
AFSL holders issuing OTC derivatives to retail clients.
What triggers it
Issuing covered derivatives.
When due
Continuous.
Evidence required
AFSL authorisation; product design conformance; client onboarding + suitability records.
Max penalty
Civil penalties to financial services maximum
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
Source legislation
Industries
Topics
Source: https://asic.gov.au/regulatory-resources/financial-services/product-intervention-power/. Rules Mate is not a law firm. Always verify against the live regulator source before acting.