Regulatory Alerts2011-08-12 | RG-227RG 227 Over-the-counter contracts for difference: Improving disclosure for retail investors
The Australian Securities and Investments Commission issued Regulatory Guide 227 to establish guidelines for improved disclosure to retail investors regarding over-the-counter contracts for difference, margin forex, and similar products. The document mandates enhanced transparency measures to help retail clients better understand and assess the risks associated with these financial instruments. It also provides specific guidance on the advertising of over-the-counter contracts for difference to ensure that promotional materials are clear and not misleading.
Issued 12 August 2011
This guide is for those involved with the issue, sale or advertising of over-the-counter contracts for difference (OTC CFDs), margin forex and similar products to retail investors. It may also be of interest to issuers of exchange-traded CFDs.
It sets out guidelines for improved disclosure to retail investors to help them understand and assess these products. It also provides guidance on the advertising of OTC CFDs to retail investors.
Download RG 227 (PDF 661 KB)
Read the regulation impact statement (PDF 264 KB)