ASIC, which stands for Australian Securities & Investments Commission, is an autonomous body, regulated by Aussie govt. It is basically a body that is formed to manage corporate regulations. Regulating and enforcing financial and company services law to benefit the customer’s is the basic role of ASIC.
ASIC Regulated Binary Options Brokers
There are only a few ASIC regulated binary brokers. If you are an Australian resident I highly recommend choosing an ASIC broker as you can trust the reputation of the operating company behind the broker. To receive an Australian Financial Services license the broker must have at least $1 million in assets plus pass many other compliances including enforcing client segregation of funds, know your client (KYC) procedures and anti-money laundering procedures. Further requirements include:
- Client funds need to be segregated from company funds
- Client money account must be reconciled every single day
- Monthly/Yearly audits from ASIC
- Must be fully underwritten/Insured
- Client money must be sent straight away when request is received
Here are the salient acts that ASIC abides by:
- 2001 – Corporation Act – It is basically an act for the commonwealth Australia. This law is concerned with the Australian business houses or companies or financial bodies. Though, the primary motto of the law is to regulate the companies. Being the largest corporation figurine of the world, this law acts as a principal legislation body in Australia.
- Investment and Securities Commission Act 2001 – This is another act that regulates mainly financial bodies. Though, have been endowed with the power to regulate companies too.
- Consumer Credit Protection Act 2009 – This act is concerned with the consumer credit protection.
- Insurance Contracts Act 1984 – This act is mainly enforced to save the public interest, by enforcing several norms for the insurance providing organizations.
In the year of 1991, in accordance with ASC Act 1989, ASC or Australian Securities Commission was formed. Soon ASC underwent a modification and turned into ASIC or Australian Securities & Investments Commission. The motto of the ASC was to unify the private companies to replace security commissions, national companies and offices that are related with corporate affairs within the territory or state.
It was 1st July, 1998; ASC gets modified to form ASIC. Now, ASIC became the new corporate regulator. The basic aim was to secure public interest and consumer protection. Soon, it was reinforced with the aforementioned Acts. Though, initially its aim was to regulate companies, consumer protection, deposit taking, and insurance, soon its power was enhance to regulate the Australian Stock Exchange too. It was the year of 1998, when ASIC was endowed with such further regulatory power.
ASIC Functional Areas and Responsibilities
ASIC has some fixed functional areas. Have a look on them:
- Governing the corporate and corporate organizations.
- Financial services are also regulated and supervised by this governing body.
- Derivative and security lending to the consumers is another functional aprt of this organization.
- ASIC is also a concerned authority for the insurance sector. However, such responsibility came into the picture lately.
- Protecting the consumers aim is another important functional aspect.
- Providing financial literacy is one of the great responsibilities of this governing body.