The Australian Securities and Investments Commission (ASIC) has filed a case in the Federal Court against the online investing platform eToro Aus Capital Limited about the suitability of eToro’s target market for contract for difference (CFD) products.
The case is being brought about the appropriateness of eToro’s target market for CFD products. The Australian Securities and Investments Commission (ASIC) asserts that eToro’s target market for contracts for difference (CFDs) was far too wide for such a high-risk and volatile trading product, and that the platform used inadequate screening measures, which resulted in violations in the company’s design and distribution duties.
Customers are given the opportunity to speculate on the value of underlying assets via the use of CFDs, which are leveraged derivative contracts. The conduct of eToro, according to ASIC’s assessment, undoubtedly exposed a substantial number of retail customers…
