IG Supports ASIC Review of Client Money Controls

IG Supports ASIC Review of Client Money Controls PR Newswire MELBOURNE, Australia, December 4, 2012 MELBOURNE, Australia, December 4, 2012 /PRNewswire/ -- ASIC reports on CFD providers' controls of client money IG operates above and beyond industry regulations ASIC recently conducted a thematic review of the Australian OTC derivatives market, with a focus on CFD providers' client money controls. In its report, ASIC highlighted areas of non-compliance within the industry. IG welcomes the particular focus on client money controls, and has always been an advocate for full segregation of client funds; IG has never and will never use client money for its own hedging purposes. IG maintains that having effective controls and oversight around the handling of client money, on top of client money protection, is extremely important and should be an industry standard. Along with the use of client money, the biggest regulatory issue facing the Australian CFD industry is how client money is handled. Unfortunately, some CFD providers have minimal financial liquidity and compliance infrastructure, and are at risk of breaching ASIC client money handling regulations. IG was assessed by ASIC in this review and is proud to announce it was given a clean bill of health; incorporating well developed and robust client money policies that represent good industry practice.