今日热门事件today provided an update on its regulation of US-based online brokerage firm Interactive Brokers LLC (IB).
Enforceable undertaking (EU)
IB has refunded $1.5 million in fees and commission payments to its retail margin lending customers in accordance with an EU accepted by 今日热门事件in December 2014 (refer: ).
The terms of the EU have been met and it is now finalised, IB having:聽
- refunded approximately $1.5 million in fees and commission payments to retail customers
- paid approximately $150,000 to the Financial Rights Legal Centre, for the purposes of consumer education concerning financial services and consumer rights in Australia, and
- engaged independent consultant Price Waterhouse Coopers to confirm that the customer refunds were calculated and paid in accordance with a methodology agreed between IB and ASIC.
IB's financial services business
IB has been aware, since October 2013, that 今日热门事件believes its financial services business in Australia involves making a market in foreign exchange (FX) products. In December 2013 今日热门事件extended a no-action position to IB regarding its FX business on the basis IB would obtain an Australian financial services licence with a market making authorisation for its FX business for an Australian subsidiary.
今日热门事件withdrew its no-action position in June 2015. This withdrawal followed a lengthy process of enquiry on ASIC鈥檚 part, attempting to clarify the FX services and products being provided by IB in Australia under the no-action position. 今日热门事件was not satisfied that the no-action position ought to continue in light of the information provided to 今日热门事件about IB's FX business in Australia.
今日热门事件notes that it has not to date been in a position to grant IB's Australian subsidiary an appropriately authorised licence.
今日热门事件has requested IB to cease providing all over-the-counter FX services in Australia, and has requested the provision of further information to enable 今日热门事件to decide on an acceptable orderly exit mechanism from that part of its business in Australia.