de | cn | ru

Brokers News

ASIC Tightens Its Grip: City Index Australia Must Appoint an Independent Expert

Over the past few months, we've seen financial regulators around the world rectify a number of rules concerning the foreign exchange industry, with the Australian Securities and Investments Commission (ASIC) being among the most active of reformers. In mid-December last year, they partnered up with leading software and consulting services provider, First Derivatives, to bring in Delta Stream – a surveillance platform which enabled the regulator to monitor local market conditions for inconsistencies or abuses. Not long after, another stringent measure was taken as ASIC officially approved their 2012 proposition on raising the minimum net capital requirement for brokers and brought the figure up from AUD $50,000 to AUD $500,000.

 
The commission's grip is clearly tightening and last week City Index Australia (CIA), the Australian subsidiary of UK-based forex and CFD brokerage City Index, found that out from first hand experience. On Wednesday, April 10, ASIC issued a press release, saying that in relation to established deficiencies in CIA's client money handling arrangements, the company will be required to hire an independent expert. This external actor will work with the CIA over the following 18 months, help them prepare an improvement plan, oversee the results and report to ASIC on a regular basis.
 
“ASIC warned the industry late last year that we expect issuers to know and understand their client money handling obligations, and to comply with them. We are no longer facilitative in our approach to the regulation of client money handling practices and we will pursue issuers who fail to meet their obligations”, says ASIC Commissioner Greg Tanzer.
 
In October last year, the regulator served two infringement notices to CIA for which the company later paid two penalties of $6,600 as prescribed by the ASIC Act. One was for falsely guaranteeing full protection of client funds on their website when CIA's Product Disclosure Statement and Customer Agreement states otherwise. The second had to deal with a similar misrepresentation, sent around in an electronic newsletter. The broker was quick to respond, though. They removed the potentially misleading content and acted in compliance with the rest of the commission's demands.
 
On the other side of the Pacific, Interactive Brokers faced a similar situation last week concerning weaknesses in managing segregated client accounts. These failures to adhere to the local requirements resulted in a much more solid fine than the one the CIA had to pay, $225,000, imposed on them by ASIC's U.S. counterpart, the Commodities Futures Trading Commission (CFTC).
TAGS: asic  increase  net capital requirement  broker  forex  australia  city index  cia  independent expert 

More news about City Index

Broker Country Regulation Platform Min Deposit Review
US CFTC, NFA MT4, Web,
in-house
$50 Review Website
US NFA, CFTC MT4 $250 Review Website
Cyprus, UK, Mauritius CySec, FCA, FSC MT4, MT5, Web $10 Review Website
Australia ASIC MT4, MT5,
IRESSTrader
$100 Review Website
Cyprus, Australia CySec, ASIC MT4, MT5 $5 Review Website
UK, Australia, South Africa FCA, ASIC, FSCA MT4, Trading
Station,
NinjaTrader
$50 Review Website
UK, Cyprus, UAE, South Africa FCA, CySEC, DFSA, FSB MT4, MT5, FxPro
Markets,
cTrader
$100 Review Website
Cyprus CySEC MT4, MT5, Web $1 Review Website
Belize IFSC MT4, MT5 $100 Review Website
Cyprus, UK, South Africa, UAE CySec, FCA, FSCA, DFSA MT4, MT5, Web $5 Review Website
Cyprus, UK CySEC, FCA MT4, MT5 $1 Review Website
UK FCA MT4, Web, MT4
for Mac
$100 Review Website
Australia, UK ASIC, FCA MT4, MT5,
cTrader
$200 Review Website

More Forex Brokers News

FXTM Launches 30% Welcome Bonus

Aug 06 2019 13:38:53

  As part of FXTM’s mission to provide clients with an exceptional trading experience, the international broker has launched its latest offering – the 30% Welcome Bonus!   This promotion, available under Exinity Limited, boosts your account by an extra 30% when you deposit $100... Read more

XM parent actively prepares for the launch of its US brand Trading.com

Jul 03 2019 14:19:28

  Trading Point Group, the owner and operator of the XM brand, actively prepares for the future launch of its US brand Trading.com. Read more

FBS Invites 20 Best Partners To a VIP Party

Jul 02 2019 15:04:24

Partner parties is a great way to get to know company’s local promoters and celebrate loyalty, motivation, and cooperation. In 2019, FBS broker launches the FBS Stars contest with a round trip flight to Russia’s second largest city and a VIP party invitation as a prize. Read more

Vantage Prime will no longer service non-Australian clients

May 20 2019 13:36:39

  Vantage Prime, which is a part of the Vantage FX group, announced it will no longer service non-Australian clients, online media Finance Magnates reported today. The broker’s decision is taken due to regulatory concerns. Read more

Dukascopy warns it has no cooperation with shady broker GCG Asia

May 16 2019 13:29:47

  Swiss forex brokerage and bank Dukascopy has repeatedly warned investors that it is has no cooperation Guardian Capital Asia (GCG Asia) and that the latter is likely involved in a fraudulent scheme. Read more

$75 mln forex Ponzi scam revealed in the US

May 03 2019 16:46:08

The Commodity Futures Trading Commission (CFTC) in the US has filed charges against Florida based Oasis International Group, Oasis Management and Satellite Holdings along with their owners for running a 75 million USD Ponzi scheme, concealed as forex investment program. Read more

Australians lost $86 mln to investment scams in 2018

May 02 2019 17:04:18

Australians lost over 86 million USD to investment scams in 2018 alone – the biggest portion of the almost 490 million USD  in losses from over 378 000 scam reports, the latest report of the Australian Competition and Consumer Commission’s (ACCC) reveals. Read more

FXTM now offers a deposit bonus of up to $5 000

Apr 25 2019 11:10:24

  Global award-winning brokerage FXTM has launched their biggest deposit bonus promotion ever. The broker is now offering an extra 30% back from every amount their traders deposit over a period of 30 days, up to a total of $5,000. Read more

FXTM appoints Han Tan as a Market Analyst for Southeast Asia region

Apr 19 2019 13:28:36

  Global award-winning forex broker FXTM has just announced the appointment of Tan Chung Han (Han Tan) as a Market Analyst. Read more

FXTM gets a license from Mauritius’ FSC

Mar 28 2019 09:59:36

  Award-winning forex brokerage  FXTM (ForexTime) continues its ongoing global expansion. The broker announced it has acquired a license from the Financial Services Commission (FSC) of the Republic of Mauritius previous week. Read more

de | cn | ru