Australian Securities and Investments Commission
(ASIC)Regulatory Snapshot
The Australian Securities and Investments Commission is Australia's integrated corporate, markets, financial services, and consumer credit regulator. Founded in 1998, ASIC enforces and regulates company and financial services laws to protect Australian consumers, investors, and creditors. It is widely regarded as one of the world's most effective and transparent financial regulators.
About ASIC
The Australian Securities and Investments Commission (ASIC) is an independent Commonwealth government body that acts as Australia's corporate regulator. ASIC's role encompasses the regulation of Australian companies, financial markets, investment brokers, financial service agencies, and credit providers, making it one of the most comprehensive regulatory authorities in the Asia-Pacific region.
Regulatory Framework
Any financial institution engaged in financial transactions in Australia is required to hold an Australian Financial Services Licence (AFSL). ASIC's regulatory framework covers market supervision, licensing of financial services providers, enforcement of compliance standards, and consumer protection. The commission has significant product intervention powers, allowing it to restrict or ban harmful financial products when necessary.
Investor Protection
ASIC mandates that all regulated brokers maintain client funds in segregated trust accounts, completely separate from the firm's operational capital. Since 2021, retail leverage limits have been capped at 1:30 for major currency pairs, with lower limits for other instruments. Negative balance protection is mandatory, ensuring that retail clients cannot lose more than their deposited funds.
Verification & Transparency
Traders can verify the regulatory status of any broker by searching for their AFSL licence number on ASIC's online registry. The commission also maintains a public register of banned and disqualified persons, as well as an enforceable undertakings register, providing a high level of transparency in the Australian financial services sector.
- Mandatory client money segregation in trust accounts
- Negative balance protection for retail clients
- Product intervention powers to restrict harmful financial products
- Australian Financial Services Licence (AFSL) requirement
| Instrument | Retail | Professional |
|---|---|---|
| Major Forex | 1:30 | 1:500 |
| Minor Forex | 1:20 | 1:400 |
| Gold | 1:20 | 1:400 |
| Indices | 1:20 | 1:400 |
| Shares CFDs | 1:5 | 1:200 |
| Crypto | 1:2 | 1:50 |
Restricted Countries
ASIC regulates all financial services in Australia including banking, insurance, and superannuation.
Body: Australian Financial Complaints Authority (AFCA)
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