ASIC – Australian Securities and Investments Commission

Australian Securities and Investments Commission is Australia’s corporate, markets and financial services regulator and one of the leading authority when it comes to regulating the OTC markets including forex and binary options brokers registered and operating from Australia.

ASIC, the abbreviation for Australian Securities & Investments commission is Australia’s corporate, markets and financial services regulator and one of the leading authority when it comes to regulating the OTC markets including forex and binary options brokers registered and operating from Australia. As the financial services regulator, ASIC licenses and monitors financial services businesses to ensure that the licensed businesses operate efficiently, honestly and fairly. These businesses typically deal in superannuation,managed funds, shares and company securities,derivatives, and insurance.

ASIC contributes to Australia’s economic reputation and well being by ensuring that Australia’s financial markets are fair and transparent, supported by confident and informed investors and consumers.

ASIC is an independent Commonwealth Government body, set up under and administered by the Australian Securities and Investments Commission Act (ASIC Act). ASIC acts as the operating body under the Corporations Act.

ASIC – Who do they regulate?

ASIC regulates Australian companies, financial markets, financial services organizations and professionals who deal and advise in investments, superannuation, insurance, deposit taking and credit.

As the consumer credit regulator, Australian Securities and Investments Commission licenses and regulates individuals and businesses engaging in consumer credit activities (including banks, credit unions, finance companies, and mortgage and finance brokers). ASIC ensure that licensees such as ThinkForex meet the standards – including their responsibilities to consumers – that are set out in the National Consumer Credit Protection Act 2009.

As the markets regulator, Australian Securities and Investments Commission (ASIC) assess how effectively authorized financial markets are complying with their legal obligations to operate fair, orderly and transparent markets. We also advise the Minister about authorizing new markets. On 1 August 2010, we assumed responsibility for the supervision of trading on Australia’s domestic licensed equity, derivatives and futures markets.

What does ASIC do?

The Australian Securities and Investments Commission Act 2001 requires ASIC to:

  • maintain, facilitate and improve the performance of the financial system and entities in it promote confident and informed participation by investors and consumers in the financial system
  • administer the law effectively and with minimal procedural requirements enforce and give effect to the law
  • receive, process and store, efficiently and quickly, information that is given to us make information about companies and other bodies available to the public as soon as practicable.

Advantages to consumers trading with ASIC regulated brokers

ASIC promotes confident and informed participation by consumers and investors in the financial system and promote the interests of consumers and protect their rights.

ASIC protects consumers through:

  • providing education, through the National Financial Literacy Strategy
  • providing trusted and independent information, tools and ongoing support
  • working in partnership with the financial services industry and promoting best practice

Regulated brokers compliance with ASIC

All registered brokers, forex and binary options need to comply with the ASIC code of conduct. As an AFS licensee any regulated and licensed broker will be obligated to:

  • conduct and disclosure
  • the provision of the financial services provided
  • the competence, knowledge and skills of the broker’s responsible managers, as well as their good fame and character
  • the training and competence of the forex broker’s representatives and authorized representatives
  • ensuring the broker’s representatives (including authorized representatives) comply with the financial services laws
  • compliance, managing conflicts of interest and risk management
  • the adequacy of financial, technological and human resources of the broker
  • the broker’s dispute resolution and compensation arrangements