Australian Parliament passes new Forex legislation – Berndale still leads regulation
After more than five months of industry chatter, the Australian Government has today announced changes to the Retail Client Money law.
The Treasury Laws Amendment (Measures No 1) Bill 2016 will alter what retail financial services brokers, who provide over-the-counter derivatives products such as forex, can do with client funds. Until recently, Australian brokers that fell under the jurisdiction of the Australian Securities & Investments Commission (ASIC) were able to utilise client money for a range of business-related expenses, includes marketing and other capital purchases.
“Berndale is proud to be well ahead of today’s ruling, and we feel this movement will further call for even greater transparency across the forex industry” said Chris Kaltzidis, General Manager for Berndale Capital Securities.
“Since the beginning, our brand has maintained a segregated trust account for all client funds. For traders, this should be their highest consideration when selecting an ASIC regulated broker” said Mr Kaltzidis.
The new laws gives non-compliant brokers one year to comply with the amended legislation, but have been met with considerable resistance from a number of smaller Australian brokerage firms. These firms now face the threat of not having sufficient capital to meet requirements imposed by ASIC.
Minister for Revenue and Financial Services, the Hon Kelly O’Dwyer MP stated that “The Bill demonstrates the Government’s commitment to taking practical action to ensure Australian consumers are protected when they engage with financial product and service providers, whilst at the same time fostering a business environment that encourages entrepreneurialism.”
Full details of the new legislation can be viewed directly on the Parliament of Australia website.
Traders can see the full Berndale Capital product range, all of which feature segregated accounts here.