ASIC

The Australian Securities and Investments Commission (ASIC) is an independent agency of the Australian government responsible for regulating Australian companies and financial services and enforcing laws to protect Australian consumers, investors and creditors. ASIC's role is to ensure Australia's financial markets are fair, transparent and efficient.

The Main Functions of ASIC

ASIC was established on July 1, 1998. Its regulatory responsibilities and scope are stipulated by the Australian Securities and Investments Commission Act 2001 (ASIC Act). The main functions of ASIC include:

1. Register and regulate companies, auditors, professionals involved in corporate matters and financial service providers

2. Supervise and enforce company law, financial services law, credit law and other relevant laws

3. Monitor and promote market integrity, market participant conduct, market infrastructure and product disclosures

4. Investigate and combat irregularities, fraud and illegal activities in financial markets

5. Educate and protect consumers, investors and creditors and increase their financial literacy and awareness

6. Assist financial regulatory agencies in other countries or regions to participate in international financial regulatory cooperation and coordination.

The Impact of ASIC on the Forex Market

• ASIC regulates and authorizes foreign exchange brokers in Australia to ensure that they comply with relevant laws and rules and protect the interests of consumers, investors and creditors. ASIC requires Forex brokers to hold a valid Australian Financial Services License (AFSL) and have a working capital of at least US$1 million. ASIC also requires forex brokers to keep client funds separate from the company's funds in segregated bank accounts and provide negative balance protection (NBP).

• ASIC ensures that the foreign exchange market is fair, transparent and efficient by monitoring and promoting its integrity, participant conduct, infrastructure and product disclosures. ASIC also maintains the stability and credibility of the foreign exchange market by investigating and combating improper conduct, fraud and illegal activities in the foreign exchange market.

• ASIC improves foreign exchange trading literacy and awareness among consumers, investors and creditors by educating and protecting them. ASIC also prevents forex brokers from inducing customers to open or fund trading accounts through rewards, free gifts, spread rebates, bonus points, etc. by prohibiting certain types of promotions or incentives.