Regulators

Australian Securities and Investments Commission (ASIC)

Established in 1998, the Australian ASIC is an independent government department responsible for regulating Australian financial market activities.

Forex Regulatory Tips

According to ASIC's official website information query, the Australian Securities and Investments Commission ("ASIC") regulates leveraged foreign exchange transactions.

Australia's definition of leveraged foreign exchange: Margin FX

Organization Profile

1. Nature of the organization: government agency
2. Institutional introduction: The Australian Securities and Investments Commission, the full English name of the Australian Securities & Investments Commission, referred to as ASIC, was established on July 1, 1998, and its regulatory responsibilities and regulatory scope were determined by the 2001 Australian Securities and Investments Commission Act (ASIC Act). ) legislative provisions. The agency is an independent government department and exercises independent regulatory functions over companies, investment practices, financial products and services in accordance with the law. The Australian Securities and Investments Commission is the regulator of the Australian banking, securities, and foreign exchange retail industries. With the promulgation of the Australian Securities and Investments Commission Act in 2001, ASIC has since brought the retail foreign exchange market into the daily supervision scope, and has become an important part of Australia's national financial system with banking, securities, insurance and other financial industries.
3. Regulatory functions
In terms of regulation
(1) ASIC regulates financial markets and financial services institutions engaged in investments, pension funds, insurance, deposits and credit cards.
(2) As a consumer credit regulator, ASIC supervises and issues licenses to companies engaged in credit activities, including banks, credit unions, financial companies, mortgages, and financial brokers.
(3) As a market regulator, ASIC urges the financial market to be legal, fair, orderly, transparent and open.
(4) On August 1, 2010, ASIC, under the license of the Australian government, undertook the supervision of the normal operation of trading stocks, derivatives and domestic futures markets in the market.
(5) As a financial services regulator, ASIC licenses and monitors financial services companies to ensure effective, honest and fair operations. These companies are engaged in pension insurance, funds, stocks, and corporate securities, derivatives, and insurance business.
In maintaining market integrity and protecting consumer rights
(1) Market integrity refers to preventing human manipulation, fraud and unfair competition in the market, protecting market participants from financial fraud and other unfair practices, thereby enhancing investors’ confidence in the financial market and maintaining the stability of the financial market .
(2) The protection of consumer rights and interests is reflected in ensuring the integrity and fairness of companies, securities and options markets through adequate and timely disclosure of market information, and ensuring that small and medium investors can obtain sufficient and accurate information. In case of loss due to treatment, compensation can be obtained through appropriate channels.
4. Scope of supervision
(1) Registration of financial companies to manage investment plans;
(2) Grant the Australian Financial Services License (AFSL) and the Australian Credit License;
(3) Review the qualifications of auditors and liquidators;
(4) Publish an infringement notice;
(5) Issue a ban on operating credit activities/financial services; formulate and maintain unified rules for the financial market, etc.
Scope of consumer and investor protection
(1) We have the right to protect consumers from financial services fraud and injustice.
(2) ASIC provides the following services to consumers:
a) MoneySmart: A website operated by ASIC that provides you with financial advice and strategies. This website provides guidance and advice on all financial issues related to your life, including financial management, borrowing, credit cards, insurance, retirement pensions, various investments, economic fraud, life services (buying a car, buying a house, unemployment), and financial knowledge classes. Link to introduce foreign exchange risk analysis: https://www.moneysmart.gov.au/investing/complex-investments/foreign-exchange-trading.
b) Fund loan consultation
c) Pension funds and investment advice
d) Unclaimed funds consultation
e) Company bankruptcy consultation: When a company goes bankrupt and has no ability to repay its debts, it will usually be handled by an external management office. ASIC's external management consists of a team of liquidators, administrators, and collectors. All members should be registered with ASIC. . (Terms reference link: http://www.asic.gov.au/for-consumers/insolvency-your-rights/)
f) Code of Conduct
g) Popularization of financial knowledge
h) How to lodge a complaint: Inquire about the name and nature of the company, lodge a complaint against a company registered with ASIC, lodge a complaint with ASIC, lodge a complaint against a website operated by ASIC. (Reference link: http://www.asic.gov.au/about-asic/contact-us/how-can-we-help-you/)

Licence application

1. Application Requirements
2. Application process
Step 1: Apply for and change an AFS license. Please read this section for an overview of the application.
Step 2: Prepare your AFS license application or change application. After submitting the online application, you must submit all core evidence in a timely manner. You will need to provide all supporting materials before submitting your application. You can email scanned copies of relevant documents to ASIC, [email protected] Please include the applicant's name and application reference number in the email header.
Step 3: Prepare your additional supporting documents. Any other supporting documents you may request. To save time and expense, please do not prepare any additional documentation unless we seek additional documentation from you, as additional documentation may not be required.
3. Application time: about 240 days
Note: It takes about two years to apply for a retail foreign exchange license authorized by ASIC in Australia.

Application Fee

Australia ASIC complex financial product categories: agricultural investment plan management (based on individual contracts), exchange options, hedge funds, leveraged derivatives (such as CFDs, foreign exchange margin contracts aka foreign exchange contracts), non-standard or non-standard Complex fund management, structured financial products, warrants with linear returns. Application Category Form Fee (from July 1, 2020) Schedule 1 Item Number Remarks Online Application for Individual AFS License Retail Customers, Low Complexity Products FSL1A$2233Item 1(a)(i) Retail Customers, High Complexity Products FSL1C$5025 Item 1(a)(ii) Institutional customers, low-complexity products FSL1J$1488Item 1(c)(i) Institutional customers, high-complexity products FSL1L$3350Item 1(c)(ii) Online application for corporate AFS license retail customers , Low Complexity Product FSL1E$3721Item 1(b)(i) Retail Customers, High Complexity Product FSL1G$7537Item 1(b)(ii) Institutional Customers, Low Complexity Product FSL1N$2233Item 1(d)(i) Institutional Customer, high-complexity product FSL1P$5025Item 1(d)(ii) retail customer applying for individual AFS license, low-complexity product FSL1B$3349Item 2(a)(i) retail customer, high-complexity product FSL1D$7537Item 2( a)(ii) Institutional Clients, Low Complexity Products FSL1K$2233Item 2(c)(i) Institutional Clients, High Complexity Products FSL1M$5025Item 2(c)(ii) Written Application for Corporate AFS License Retail Clients, Low Complexity FSL1F$5582Item 2(b)(i) retail customers, high complexity products FSL1H$1,1305Item 2(b)(ii) institutional customers, low complexity products FSL1O$3349Item 2(d)(i) institutional customers, High Complexity Product FSL1Q$7537Item 2(d)(ii)
For more information, please visit: https://asic.gov.au/for-business/payments-fees-and-invoices/asic-fees/fees-for-commonly-lodged-documents/financial-services/
https://asic.gov.au/regulatory-resources/forms/forms-folder/fs01-application-for-afs-licence/

Regulatory Inquiries

Step 1: Understand the difference between AFSL, ABN, and ACN before starting the query.
The full name of ACN is Australian Company Number, the Australian company registration code, with a total of 9 digits. All companies in Australia must register with ACN, which is equivalent to the domestic business registration.
The full name of ABN is the Australian Business Number, which is the business code of the Australian company, with a total of 11 digits (two-digit tax number and 9-digit ACN number). An ACN does not necessarily have an ABN. For example, some dormant companies do not have an ABN. If they have an ABN number, they must have an ACN number.
The full name of AFSL is Australian Financial Services Licensee, which is an Australian financial services license, usually with 6 digits. Only companies engaged in financial services have AFSL. The Australian regulatory number usually referred to in the industry is the AFSL license number.
ACN and ABN are just the most common registrations. Companies with ACN and ABN alone are not qualified to do financial derivatives.
Anti-fraud tips:
If there is a foreign exchange dealer who advertises that it is regulated in Australia, and the supervision number is 9 or 11 digits, then there must be something wrong with this company, because the 9 digits are ACN, the 11 digits are ABN, and ACN or ABN is not a supervision number at all.
Step 2: Check whether the dealer has an AFSL license, and whether the business scope of the license includes retail foreign exchange business
Method 1: Visit the ASIC inquiry address: https://connectonline.asic.gov.au

Method 2: Open ASIC's official website directly to query www.asic.gov.au, and select Professional Registers as shown in the figure

Step 2: Enter the name of the company to be queried at A or the AFSL license number at B, select Australian Financial Services Licensee in the drop-down menu of select register, and then click Search.

Step 3: If you enter the company name to directly search for the supervision situation, it will match multiple search results with high similarity of names. Therefore, you should pay attention to the consistency of the company name. The two common supervision states are current (currently regulated), ceased (regulation has been cancelled).

Step 4: If you know the AFSL regulatory number of the dealer, the search is very convenient, and you will not worry about finding other companies, because entering the regulatory number and clicking search will directly jump to the query result page.
If current is displayed in the status, it means that the company is currently regulated. There is External Dispute Resolution (EDR) for short, indicating that the company is able to provide services to retail customers, and the basic contact information of regulated companies can be found through EDR.

Anti-fraud tips:
According to Australian ASIC regulations, if a dealer wants to provide financial products and services to retail customers, it must join an external dispute resolution agency to protect the rights and interests of retail customers. If an Australian Forex dealer does not have an EDR, then it cannot accept retail clients (that is, what we call retail clients). It is understood that institutional clients in Australia are more than 500,000 Australian dollars. With this trick, you can also filter out a lot of fake companies, because there are currently many domestic websites that are fake financial service providers in Australia that only do institutional business.
Step 5: Check the regulated business areas, usually have these two categories provide financial product advice (financial product advice) and deal in a financial products (financial product transactions), and these two categories usually have derivatives (financial derivatives) and foreign exchange contracts foreign exchange contracts, the target customer group should include retail clients (retail clients), because the vast majority of investors are retail clients.

A few things to keep in mind when looking for an ASIC regulated Forex broker:
Take a look at the regulatory status current.
Second, look at the EDR, indicating that retail customers are accepted.
Three look at derivatives (financial derivatives) and foreign exchange contracts foreign exchange contracts.
Fourth, confirm the website of the real regulated company and check it through EDR.
Many deck companies use ACN or ABN to falsely claim that they are regulated in Australia. Next, I will teach you how to check ACN and ABN↓
1. Open the Australian ASIC inquiry page: https://connectonline.asic.gov.au

Select organization and business names from the within drop-down menu, under the

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