For a while, Australia has been The Land of the Free for retail forex traders. But, no more.
In 2 years or less, Australia will be just another Nanny State, like the US, the UK, and all of Europe. Here’s the story from Finance Magnates, and LeapRate –
Considering Australia’s commitment to the G-20 financial regulatory synchronization regime after the Great Financial Crisis of 2008, the changes are likely to be similar to those already in place in the EU, Japan, and the US. Considering the flow of retail forex traders to Australia from Europe, the likelihood of regulatory harmonization is significant.
According to some sources with knowledge of the legislation, firms might have about two years to implement the measures.
The reason for the changes is once more a long list of clients that complained to the local regulator.
The measures will mean that Australia is no longer viewed as an easy target for global providers that aim to circumvent or bypass the leverage restrictions in other locations …
Looks like ASIC will get the same powers as ESMA, and two sources already confirmed that they are planning to introduce the same CFD/FX-restrictions in Australia from 2021 on.
Not surprised… @Clint, Australia is already a “Nanny State”… This “Intervention Law” has been kept very quiet here… Australians trading in the Forex Markets would be such a small percentage of the global number, but closing the last loop in the net on behalf of the financial behemoths was always going to happen.
"The CFD Trading & Compliance Forum in London said: “The new product intervention powers is a defining response by the authorities and will shift the landscape for Australia’s growing financial services sector.”
Note the “old world” still making attempts to apply it’s oppressive laws in the new one…
Just a simple matter of collusion from the Banking Cartel… no way out of depositing large sums with your (r; their) Broker anywhere on the planet… just the way they want it… generate a problem that doesn’t really exist and laws that benefits the financial industry won’t be far away…
“Anyone got the number of that trucking company… Truckmaster I think it’s called…” TG
Excerpts (I have put certain portions in bold type for emphasis)
If there is was any doubt about ASIC’s motives behind the latest crackdown on the industry, this morning’s news about firms getting an urgent letter from the regulator dispelled any suspicions. Australian retail brokers were asked by the regulator to suspend on-boarding clients from overseas, where the firms are not regulated.
While at first glance, the focus of the regulator’s message could be pointing at the EU, yesterday’s communique, which explicitly mentioned China is where we should be looking …
As in the EU case from last year, the most detrimental result is for end-clients which are still looking to trade with high leverage. Those will now look once again to brokers located offshore, in remote jurisdictions that provide questionable protection.
While Australian brokers have remained mostly outside of this industry trend, the times are changing fast. Companies which don’t have offshore subsidiaries will start looking to open new ones to be able to mitigate the impact of the new restrictions which the ASIC demands.
Edit
Here is another article, on the same topic, from earlier in the day —