Home Stocks Interactive Brokers can no longer issue SYEP derivatives retail investors to them,...

Interactive Brokers can no longer issue SYEP derivatives retail investors to them, according to ASIC


The official announcement stated that the regulator:

ASIC issued interim orders to prevent retail investors from purchasing SYEP Derivatives that are not suitable for their financial situation, goals or needs. ASIC also believes that the PDS may be defective.

Interactive Brokers was found to have violated the TMD of SYEP Deviatives regulations by incorrectly identifying target investors.

A regulator from Australia raised concerns about counterparty risks and securities lending risks in relation to the SYEP Derivatives, which could be triggered by Interactive Brokers default. The regulator also noted that Interactive Brokers’ PDS was incomplete due to the omission of key information like benefits, fees and commissions. It also contained misleading statements about the forfeiture or voting rights.

ASIC reported:

ASIC expects Interactive Brokers take into consideration the TMD and PDS concerns and to immediately implement steps to ensure compliance. ASIC can make a final decision if there are no resolutions to the concerns within a reasonable time. Interactive Brokers will have the opportunity to make submissions…

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