ASIC’s product intervention proposal

Find out how the proposals affect you and the products you trade.

What you need to know

ASIC recently put out some proposals that are relevant to the products you trade. We’ve put together a summary of the main proposed reforms below to help you understand these changes and how they affect you.

Will I be affected?

The ASIC proposals will impact retail clients only, not wholesale clients. You can register as a Pepperstone Pro, which means wholesale classification with additional benefits. To register, you’ll need to meet the following eligibility criteria as certified by an accountant:

  • You have net assets (including property, savings, super and any other assets you own) of at least AUD $2.5 million OR
  • You have gross income for each of the last two financial years of at least AUD $250,000.

Find out more about wholesale status or register as a Pepperstone Pro now.

Proposed changes to leverage caps

A key focus of the proposal is leverage restrictions, which will affect the amount of margin retail clients are required to deposit to trade CFDs or FX. Here’s how the proposed changes look:

  • 20:1 leverage on currency pairs and gold = 5% margin
  • 15:1 leverage on major indices = 6.67% margin
  • 10:1 leverage on commodities (excluding gold) = 10% margin
  • 2:1 leverage on cryptocurrency assets = 50% margin
  • 5:1 leverage on shares or other underlying assets = 20% margin

ASIC's consultation paper 322

Read the full Product intervention: OTC binary options and CFDs release here.

When will this happen?

This is just the start of the regulatory reform journey, so the most important thing for you to know is that nothing has changed at this stage. ASIC’s consultation process ends on 1 October 2019, after which point ASIC will consider all feedback and make a decision. Any changes to leverage can come into effect 20 days after that decision is made, while other changes will be implemented in three months following.

Our position on this

Protecting our clients is our priority and we’re considering all aspects of ASIC’s recommendations. While we’re always looking for ways to improve, we’re concerned that some of the suggestions are restrictive and may not result in the outcome that ASIC is seeking. We’ll be providing detailed analysis and assistance to ASIC to help promote the proper balance between investor protection and investor opportunity. We’ll also keep you informed as soon as things develop and give you plenty of notice of any changes that impact the service we provide you.

Can I have my say?

Absolutely. ASIC is seeking feedback from both issuers and consumers of CFDs and FX, and as you’re a consumer impacted by these proposals, we encourage you to do this.

You can provide a submission to ASIC on its proposals here.

If you have any questions, please let us know at or start a live chat with us now.