The Minister for Revenue and Financial Services, the Hon Kelly O’Dwyer MP, today announced that the Government will proceed with reforms that will provide better protection for retail investors in over-the-counter derivatives products. Australian financial service licence holders (Firms) can currently use money held on behalf of retail derivatives clients for a wide range of purposes, including for working capital. Use of client money for these purposes is either not permitted, or is more heavily regulated, in a number of other advanced G20 economies. Permitting the use of client money for these purposes therefore exposes Australian retail clients to a greater risk of loss in the event of the Firm’s insolvency. As announced in the draft Bill released in February 2016, the new client money protection regime will remove the current exemption…

CFD & FX Forum strongly welcomes Government legislation to better protect client monies in the Contracts for Difference (CFD) and Foreign Exchange (FX) retail derivatives sectors The CFD & FX Forum, whose member Firms represent the majority of trading volumes in these sectors, has strongly welcomed today’s announcement by the Government that it will move to introduce legislation to better protect client monies, saying the proposed legislation will lift investor confidence and enhances Australia’s standing as a well-regulated financial centre with best practice investor protection legislation. Read more here: cfd-fx-forum-welcomes-governments-move-to-protect-client-money8-nov-2016