Document ID: chunk:federal_register_of_legislation:F2020L01338:body:0:p1
Version: federal_register_of_legislation:F2020L01338
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ASIC Corporations (Product Intervention Order—Contracts for Difference) Instrument 2020/986
I, Oliver Harvey, delegate of the Australian Securities and Investments Commission, being satisfied that CFDs (as defined in the following legislative instrument) are a class of financial products that:
    (a) is available for acquisition by issue to persons as retail clients; and
    (b) has resulted in and is likely to result in significant detriment to retail clients;
make the following legislative instrument.

Date 22 October 2020

Oliver Harvey

Contents

Part 1—Preliminary
1 Name of legislative instrument
2 Commencement
3 Authority
4 Interpretation
Part 2—Order
5 Conditional prohibition on dealing in CFDs in relation to retail clients
6 Prohibition on providing inducements to retail clients in relation to CFDs
7 Conditions applying to dealings in CFDs in relation to retail clients
8 CFD issuers to notify retail clients of the product intervention order

Part 1—Preliminary

1 Name of legislative instrument
This is the ASIC Corporations (Product Intervention Order—Contracts for Difference) Instrument 2020/986.

2 Commencement
This instrument commences on the later of:
           (a)  23 November 2020; and
           (b) the day after it is registered on the Federal Register of Legislation.
Note: The register may be accessed at www.legislation.gov.au.

3 Authority
This instrument is made under subsection 1023D(3) of the Corporations Act 2001.

4 Interpretation
(1) In this instrument:
Act means the Corporations Act 2001.
CFD means a derivative that:
           (a) is a contract for difference; and
           (b) is provided by a person (CFD issuer) who carries on a business of issuing contracts for difference to other persons (holders).
CFD issuer: see the definition of CFD.
CFD trading account means a trading account that a holder has with a CFD issuer, through which the holder can place orders to acquire and dispose of CFDs.
client money account means, in relation to CFD issuer, an account maintained by the CFD issuer for the purposes of section 981B of the Act.
contract for difference means a derivative to which the following apply:
           (a)   the value of the derivative, or the amount of consideration to be provided under the derivative, is ultimately determined, derived from or varies by reference to (wholly or in part) the change, between the acquisition and termination of the derivative, in the amount or value of an underlying specified under the terms of the derivative;
              Note 1: For example, a derivative under which, at termination, the amount of consideration payable depends (wholly or in part) on the change in the level of a stock market index over the term of the derivative.
              Note 2: There may be other factors that affect the value of the derivative. For example, fees and costs.
           (b)   the derivative is not able to be traded on a licensed