The volume of money pouring into Australia has doubled in the past year, in a direct response to regulatory crackdowns in Europe, Japan, North America and China, the regulator said.
"Regulatory arbitrage is a concern," said ASIC commissioner Cathie Armour. "We are concerned if an Australian licensee is bringing detriment to clients, wherever they are located."
ASIC will prevent CFD issuers offering customers inducements, and will put caps on leverage – following similar moves by regulators in Europe, which resulted in some foreign providers using Australia to issue product with higher leverage than the European caps, market sources said.
My 2 cents - hopefully, it's just about reducing available leverage rather than banning them outright to AUS clients.
