REP 579 Improving practices in the retail OTC derivatives sector
Released 28 June 2018
Recent ASIC activities have revealed practices in the retail over-the-counter (OTC) derivatives sector which fall short of our expectations.
These practices include:
- misleading marketing materials
- unclear pricing methodologies
- inadequate risk management practices
- inadequate monitoring of counterparties
- inappropriate referral arrangements.
We will continue to take action to address these risks by raising industry standards and improving issuers’ compliance. To better direct our activities, we recently conducted a review of 57 retail derivative issuers to gauge the size of the industry, the products offered and the risks posed to investors.