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.

Read the report (PDF 99 KB)

Last updated: 28/06/2018 10:54