18 May 2023 - Saxo Capital Markets amends TMDs following ASIC stop orders

ASIC made eight interim stop orders on 16 May 2023, preventing Saxo Capital Markets (Australia) Limited from issuing some new contracts for difference (CFDs) to retail clients because of deficiencies in their target market determinations (TMDs).

The orders were revoked on 18 May 2023, after Saxo amended the TMDs to address ASIC’s concerns.

ASIC reminds financial product issuers that under design and distribution obligations (DDO), they must clearly define target markets for their products appropriately, having regard to the risks and features of their products. Issuers also need to consider how their product will reach the target market and have appropriate distribution conditions in place to ensure the product is directed towards the target market.

Financial Education Professionals acknowledges the Traditional Owners of Country throughout Australia. We pay our respects to Elders past, present and emerging.