Regulatory Alerts2026-01-20
ASIC secures nearly $40 million in refunds to investors and drives change after CFD sector falls short
The Australian Securities and Investments Commission (ASIC) secured the return of nearly $40 million to over 38,000 retail investors and mandated substantial compliance improvements across the contracts for difference (CFD) sector following a comprehensive industry review. The regulator identified widespread breaches of its product intervention order and design and distribution obligations, particularly regarding margin discounts and erroneous transaction reporting, which resulted in significant financial detriment to consumers. This intervention has driven widespread changes in issuer practices, including improved target market determinations and client onboarding processes, while ASIC continues to monitor the sector ahead of the order's expiration in 2027.