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Benchmark disclosure requirements for Over-the-Counter Contracts for Difference – Regulation Impact Statement – Australian Securities and Investments Commission

On 12 August 2011, the Australian Securities and Investments Commission (ASIC) released a suite of disclosure benchmarks for Product Disclosure Statements for Over-the-Counter Contracts for Difference (OTC CFDs). OTC CFDs are considered high risk financial products requiring more detailed disclosure on a number of key points. Providers will be required to disclose against the benchmarks specified by ASIC, or explain why they have not. The benchmarks include:

  • client qualification policies;
  • acceptable forms of opening collateral;
  • counterparty risk (hedging practices);
  • financial resources held; and
  • use of client money.

 The Regulation Impact Statement was prepared by ASIC and was assessed as adequate by the Office of Best Practice Regulation.