logo |

News

    Home   >     Industry    >     Main body

    ASIC Bans Unsolicited Sale of Financial Products

    Abstract:The Australian Securities and Exchange Commission (ASIC) published updated regulatory guidance on the prohibition of hawking financial products that will ban the retail sale of unsolicited financial products on Thursday.

      

    ASIC

      The Australian Securities and Exchange Commission (ASIC) published updated regulatory guidance on the prohibition of hawking financial products that will ban the retail sale of unsolicited financial products on Thursday.

      According to the new rules, financial instrument providers must receive clear consent from the customer with the signing of a contract. In addition, it added that consent must be positive, voluntary and clear.

      “These changes put in place fairness protections, so consumers are not sold products they don‘t want or don’t need. The restrictions mean consumer needs will be central to how firms offer products,” said ASIC Deputy Chair Karen Chester.

      These reforms were introduced with recommendations of the Royal Commission on misconduct in the banking, superannuation and financial services industry. The purpose of them is to put a curb on rising cold calls and other unsolicited contacts.

      The new regulatory guidelines will be introduced under the Financial Sector Reform (Hayne Royal Commission Response) Act 2020, which will come into effect on October 5.

      “The new hawking prohibition addresses long-held concerns about poor consumer outcomes from unsolicited sales of financial products,” Chester added. “The reforms introduced by the Government mean that consumers will be able to control how and when they are offered products, rather than being caught unawares or feeling pressured to make quick decisions.”

      According to ASIC, it will provide guidance to the industry on how they will comply with the new regime.

      Interestingly, the Aussie regulator heavily shifted its focus on customer protection and is actively curbing risky financial products and practices. Earlier it brought several restrictions on the CFDs industry and temporarily banned the sale and distribution of binary options.

      “Under the new laws, ASIC will be better able to tackle poor conduct by firms where consumers are pressured into products that are not right for them,” the Deputy Chair said.

    asic-brokers.jpg

      Best Forex Brokers Regulated by ASIC

      Saxo

      FOREX.com

      IB

      IG

      Fortrade

      AvaTrade

      Admiral Markets

      Rakuten Securities Australia

      FXCM

      Plus500

    line1.png

      Download WikiFX for more information.

    DOWNLOAD

    United Arab Emirates Dirham

    • United Arab Emirates Dirham
    • Australia Dollar
    • Canadian Dollar
    • Swiss Franc
    • Chinese Yuan
    • Danish Krone
    • Euro
    • British Pound
    • Hong Kong Dollar
    • Hungarian Forint
    • Japanese Yen
    • South Korean Won
    • Mexican Peso
    • Malaysian Ringgit
    • Norwegian Krone
    • New Zealand Dollar
    • Polish Zloty
    • Russian Ruble
    • Saudi Arabian Riyal
    • Swedish Krona
    • Singapore Dollar
    • Thai Baht
    • Turkish Lira
    • United States Dollar
    • South African Rand

    United States Dollar

    • United Arab Emirates Dirham
    • Australia Dollar
    • Canadian Dollar
    • Swiss Franc
    • Chinese Yuan
    • Danish Krone
    • Euro
    • British Pound
    • Hong Kong Dollar
    • Hungarian Forint
    • Japanese Yen
    • South Korean Won
    • Mexican Peso
    • Malaysian Ringgit
    • Norwegian Krone
    • New Zealand Dollar
    • Polish Zloty
    • Russian Ruble
    • Saudi Arabian Riyal
    • Swedish Krona
    • Singapore Dollar
    • Thai Baht
    • Turkish Lira
    • United States Dollar
    • South African Rand
    Current Rate  :
    --
    Amount
    United Arab Emirates Dirham
    Available
    -- United States Dollar
    Risk Warning

    The Database of WikiFX comes from the official regulatory authorities , such as the FCA, ASIC, etc. The published content is also based on fairness, objectivity and fact. WikiFX doesn't ask for PR fees, advertising fees, ranking fees, data cleaning fees and other illogical fees. WikiFX will do its utmost to maintain the consistency and synchronization of database with authoritative data sources such as regulatory authorities, but does not guarantee the data to be up to date consistently.

    Given the complexity of forex industry, some brokers are issued legal licenses by cheating regulation institutes. If the data published by WikiFX are not in accordance with the fact, please click 'Complaints 'and 'Correction' to inform us. We will check immediately and release the results.

    Foreign exchange, precious metals and over-the-counter (OTC) contracts are leveraged products, which have high risks and may lead to losses of your investment principal. Please invest rationally.

    Special Note, the content of the Wikifx site is for information purposes only and should not be construed as investment advice. The Forex broker is chosen by the client. The client understands and takes into account all risks arising with Forex trading is not relevant with WikiFX, the client should bear full responsibility for their consequences.