On 1 April 2021, the Australian Securities and Investments Commission (ASIC) announced a ban on the sale of binary options to retail clients.
The objective of the product intervention order is to reduce the risk of significant detriment to retail clients resulting from over the counter (OTC) binary options. The order strengthens consumer protections by banning the issue and distribution of binary options to retail clients, and brings Australian requirements into line with prohibitions in force in comparable markets overseas. It follows the commencement on 29 March 2021 of ASIC’s product intervention order imposing conditions on contracts for difference offered to retail clients.
Implementation of the product intervention order will increase the annual regulatory burden on binary option providers over the expected duration of the order by $0.07 million. A regulatory offset has not been identified.
Please note, any accessibility queries should be directed to ASIC.