The Australian Securities and investments Commission (ASIC) has outlined its priorities over the next four years in its recently published Corporate Plan 2021-25.
According to the regulator, the monitoring of Binary Options and CDFs compliance will be a priority over the next four years.
The product intervention orders for CFDs and binary options which took effect earlier in 2021 are among the foci for the regulator.
AFS licensing service is also a priority
ASIC noted that it will continue using its regulatory tools to improve consumer outcomes. The regulator added that its role to verify applications for the licenses of Australian financial services (AFS) will also be a priority. This will also include professional registrations and Australian credit licenses.
ASIC outlined the areas it will put more emphasis on, including;
Taking regulatory actions to address misconduct, Monitoring compliance with binary options and contracts for difference (CFDs) product intervention orders; and assessing the efficiency of the orders to minimize conflicts and harm to investors.
ASIC could extend binary options ban
The watchdog, which banned the retail sale and distribution of binary options in April, will decide whether to extend the ban after it expires in 18 months.
“We will continue to take opportunities to support businesses through more efficient regulation’” the agency stated, added that its priority of offering protection for investors and consumers will not change.
ASIC says it wants to continue its no-tolerance policy in the financial services industry. It reiterated that it will keep taking action against violators of the laws, including addressing misconduct in the market.
ASIC to increase the monitoring of the crypto sector
The agency has placed the regulation of the OTC derivatives market under its stage 2 priority levels to keep the market fair to all players, including the investors.
Additionally, the regulator has placed more emphasis on the regulation of the rapidly growing cryptocurrency sector. It has already warned unlicensed crypto exchanges providing services to Aussie traders.
ASIC stated that it will clamp down on crypto service providers who are not fully registered in the country.