Breaking: First Case of Australian Broker Refunding Overseas Clients

IFGM is the first broker in Australia to begin closing accounts of select clients it on-boarded from overseas.

After the country’s parliament approved a product intervention law in early April, the regulator requested a slew of data from AFS license holders which is focused on overseas clients.

Within an increasingly complex regulatory environment however, some companies are throwing in the towel and bowing regulatory pressure.The iFX EXPO is Back in Limassol!End-June DeadlineThe latest communication on part of the Australian regulator signaled to brokers that they have until the end of June to report on their plans on how to handle clients from overseas.

The ASIC is reportedly looking to collect some data first before taking any follow-up decisions about the retail brokerage industry’s practices.That said, representatives of the regulator have been publicly vocalizing their opinion about high leverage offered to retail customers by Australian firms.