forex.pm forex forum binary options trade - Forex - ASIC Extends Retail Derivatives Issuers’ Financial Requirements for 5 Years
  • Welcome to forex.pm forex forum binary options trade. Please login or sign up.
 

ASIC Extends Retail Derivatives Issuers’ Financial Requirements for 5 Years

Started by forex4you, Sep 11, 2022, 08:13 am

Previous topic - Next topic

0 Members and 1 Guest are viewing this topic.

forex4you

ASIC Extends Retail Derivatives Issuers' Financial Requirements for 5 Years

<p>The Australian Securities and Investments Commission (<a href="https://www.financemagnates.com/tag/asic/" target="_blank">ASIC</a>)  confirmed the remade class order, defining the financial requirements of retail over-the-counter (OTC) derivatives issuers, on Friday.</p><p>The order for extending the requirements for <a href="https://www.financemagnates.com/forex/regulation/asic-seeks-5-year-extension-of-retail-otc-brokers-financial-requirements/" target="_blank">five more years</a> came as its previous order was set to expire on 1 October. Additionally, the regulator issued a public consultation paper before issuing the order.</p><p>It mandates retail OTC derivatives issuers, holding Australia Financial Services (AFS) license to meet a minimum tangible asset requirement of AU$1 million or 10 percent of their average revenue. Half of the required net-tangible assets held by these companies must be cash and cash equivalents, whereas the other half should be liquid assets.</p><p>Further, the derivatives issuers need to prepare quarterly projections of their annual cash flows. And, if the AFS license holders fail to comply with the requirements, they also need to comply with trigger point reporting <a href="https://www.financemagnates.com/terms/o/obligations/" target="_blank" id="5dbcbf88-8622-4828-a29c-70a680d32fb5_1" class="terms__secondary-term">obligations</a>.</p><p>"The financial requirements aim to ensure Australian financial services licensees have adequate financial resources to operate their business in <a href="https://www.financemagnates.com/terms/c/compliance/" target="_blank" id="569f58ee-534c-44f0-a7cd-f55b0f9a2b2a_1" class="terms__main-term">compliance</a> with the Corporations Act 2001, and to manage the operational risks inherent in the OTC derivatives market," the regulator stated.</p><p>ASIC's Other Intervention Orders</p><p>Meanwhile, the Australian regulator is bringing restrictions to minimize the risks of retail traders. It recently extended the <a href="https://www.financemagnates.com/forex/regulation/asic-wants-to-extend-retail-binary-options-ban-till-2031/" target="_blank">ban on binary options </a>until 1 October 2031, which originally came into effect in May 2021.</p><p>Furthermore, ASIC brought heavy restrictions on <a href="https://www.financemagnates.com/forex/regulation/asic-extends-leverage-restrictions-on-cfds-for-another-five-years/" target="_blank">leverages</a> offered by regulated brokers to retail clients and on their marketing tactics. Earlier this year, it extended those restrictions for five more years until 23 May 2027.</p>

This article was written by Arnab Shome at www.financemagnates.com.

Source: ASIC Extends Retail Derivatives Issuers' Financial Requirements for 5 Years
Forex4you offers wide range of trading accounts with DDE, NDDE and STP executions including more than 100 instruments. Forex4you is based on MetaTrader 4 trading platform. Clients have the advantage of daily technical and fundamental analysis, one-click trading, economic calendar, mobile trading applications, news and forecasts from Dow Jones (UK) and signals from Trading Central (US). In addition, Forex4you offers Forex dictionary, educational materials and lot of "How to" guides about Forex.

forex4you.com   share4you.com   betiforex.com Forex  beginners-guide-to-iq-option-complete-review forex4you review forex4you Forex4you Review - One of the Best Forex Brokers Forex4you Review - One of the Best Forex Brokers forex4you - PAMM forex broker review and feedback from traders forexbinaryoption.ae aroundworld24.com  Affiliate programs  Forex4you Affiliate programs   



forex4you.com