The low-down on the retail client money reforms for OTC derivatives

Financial Services
Today’s article is our third piece on OTC derivatives regulation in Australia. In today’s piece, we take a look at the new Treasury Laws Amendment (2016 Measures No. 1) Act 2017 (the Amendment Act), which was passed in to law in April of this year. This new law strengthens the regulatory regime for entities that trade over-the-counter (OTC) derivatives to retail clients.   By Dr. Drew Donnelly, Compliance Quarter.  The Amendment Act has a transition period of 12 months so that industry and regulators can getup to speed. Background: lack of protection for retail clients We have already mentioned the difference between the regulatory environment for financial products (such as derivatives), that are traded in financial markets, and those that are traded OTC (see OTC derivatives trading in Australia –…
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