ASIC has developed seven disclosure benchmarks for OTC CFDs that can help retail investors understand the risks associated with CFDs, assess their potential benefits and decide whether investment in CFDs is suitable for them.
More information about the disclosure benchmarks can be found in ASIC Regulatory Guide 227.
This table sets out which benchmarks IG meet in the related disclosure information and describe how we meet the benchmarks.
Disclosure benchmark |
Meet benchmark? |
Related information |
|---|---|---|
| Client Qualification Addresses the issuers policy on investors qualification for CFD trading |
Yes | IG will assess client qualifications when you apply to open an account. Further information can be found in section 6.1 of our PDS. |
| Opening Collateral Addresses the issuers policy on the types of assets accepted from investors as opening collateral |
No | It is suggested that a limit of $1,000 be accepted for opening payments made by credit card. IG accepts credit card payments for more than $1,000 as initial funding in order to provide flexible payment options to clients. Further information can be found in section 6.7 of our PDS. |
| Counterparty Risk – Hedging Addresses the issuers practices in hedging its risk from client positions and the quality of this hedging |
Yes | IG maintains and applies a written Counterparty Credit & Hedging Policy. Further information can be found in section 5.5 of our PDS. |
| Counterparty Risk – Financial Resources Addresses whether the issuer holds sufficient liquid funds to withstand significant adverse market movements |
Yes | IG maintains and applies policies to ensure it meets all financial regulatory obligations including the requirements of an Australian Financial Services Licensee. Further information can be found in section 5.6 of our PDS, our Financial Statements and Pillar 3 Disclosures. |
| Client Money Addresses the issuers policy on client money |
Yes | IG has a detailed Client Money policy and does not use client money for hedging with counterparties. Further information can be found in section 5.3 of our PDS and in the About IG section of our website. |
| Suspended or Halted Underlying Assets Addresses the issuers practices in relation to investor trading when trading in the underlying asset is suspended or halted |
Yes | IG does not allow new positions to be opened when the underlying market is halted or suspended. Further information can be found in section 4.4 of our PDS. |
| Margin Calls Addresses the issuers practices in the event of client accounts entering into margin call |
Yes | IG maintains and applies a written policy in relation to margin call practices and our discretions relating to close outs. Further information can be found in section 4.1 of our PDS. |
Or ask about opening an account on 1800 601 799, or +61 3 9860 1799, or helpdesk.au@ig.com.
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