ASIC’s Product Intervention OrderSalvus Team
The Regulatory Compliance team at SALVUS wishes to communicate to our clients, partners and the general public that the Product Intervention Order of ASIC is coming into force on Monday, the 29th of March 2021.
The Australian regulation announced this move, that is in line with moves by CySEC and FCA, back in October 2020. The requirements of the Product Intervation Order are:
- Reduced maximum leverage;
- 30:1 for CFDs referencing an exchange rate for a major currency pair
- 20:1 for CFDs referencing an exchange rate for a minor currency pair, gold or a major stock market index
- 10:1 for CFDs referencing a commodity (other than gold) or a minor stock market index
- 2:1 for CFDs referencing crypto-assets
- 5:1 for CFDs referencing shares or other assets
- Negative balance protection – this increased traders’ protection will be limiting a retail client’s losses to the funds in their CFD trading account;
- Prohibit the giving or offering of certain inducements – additional trading credits and rebates or ‘free’ gifts are examples of the regulator has given that should be prohibited and never offered to to retail clients.
Our team remains committed in helping our clients and partners navigate this Production Intervention Order. Should you face a challenge or wish to know more, please contact us.