Anyone familiar with ASIC rules

Hi all

I’ve been trading through a local Forex broker who are the money maker and use “account managers” to do just that.

For about 6 months my “account manager” has been providing specific detailed trading advice like an old school broker (buy x @ this volume with SL and TP here).

We lost a significant sum of money, and just by chance I found out from one of his counterparts that this is a HUGE violation of ASIC laws and his role is more to teach people how to trade, manage their equity, alert them to upcoming news etc. NOT to tell people what, when, and how much to trade.

Just wondering if anyone can clarify that this is correct. He has his own trading account with them so surely he couldn’t do what he’s doing.

What are the repercussions of this for him? (I have at least 10 emails, plus at least 2-3 times a week he does it on the phone which is all logged). Fines, suspension etc.?

Also does his firm face any repercussions for one of their employees breaching ASIC’s laws (if he in fact did?) His boss was fuming.

I am going to report to the ombudsmen and have already started speaking with a financial services solicitor about this but would prefer a resolution without involving lawyers and ombudsmen if possible.

Examples of the type of advice:

SL 1.5680

SL 1.80

Entry Looks good now

500 000

Sl 111.51
Tp 110.20

Repercussions!!.. Do not rely on the regulatory authorities in any jurisdiction. Unless they are pushed by government, smart money or self interest, they will not intervene in retail financial markets. ASIC is petrified of its own shadow and would take months to even look at a “he said, she said” case like this, if at all.
It will be a matter of how guilty can you afford to make them… they will have Professional Indemnity Insurance covering their legal costs which I would safely assume you do not. Sounds like your Solicitor has already pointed this out.

Also, in their T&C’s the clause below which you may not have read but would of agreed to before funding the account.

“Please consider our Risk Disclosure Statement and legal documentation and ensure that you fully understand the risks involved in light of your personal circumstances before you decide whether to acquire our services. We encourage you to seek independent advice if necessary.” The get out of Jail FREE Card, Don’t call us. we’ll call you…

Certainly highlights one of two things though. 1. How corrupt even regulated MM Brokers are, siphoning off of clients funds with manipulated trading advice… or 2. How fraudulent the FX market is when even they cannot trade Forex profitably…

Thanks, my solicitor isn’t some hack though, we’re talking 57th floor Gov. Phillip Tower with a view of the harbour bridge and opera house.

What about FOS the Ombudsmen?

I’m not saying your Solicitor is a hack… in view of the Harbour he could well “Late’ Lip” with the best of them.

It comes down to throwing good money after bad. Taking on any of these Brokers legally is financial suicide. Their legal framework will always be 5 steps ahead of any claim you can make… It’s like going head to head with which Bank, the baldest head and the biggest cheque book will always win, proving guilt is irrelevant.

The Financial Ombudsman Service would be my first point of contact. At the very least they will advise you on what to do next and possibly what chance you have of reclaiming any funds, legal or otherwise.

You won’t get any sympathy on this forum, Brokers behaving badly is a Myth amongst the FX elite here.
As I have said elsewhere, most traders do not have an utter clue about the actual level of financial risk they are exposing themselves to in the FX/CFD markets.

No idea on ASIC rules! Even, this is the 1st time, when I heard about this rule!

Boo hoo you got burnt by bad advice. Sux it up bro. You’re responcible for your own trade decisions. I’m sure there’s enough funds left to head down to bunnings and buy a bag of harden the duck up.

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