ASIC Says CFD Review Drove A$40 Million in Refunds and Compliance Fixes

Australia’s securities regulator said on January 20 that its review of 52 licensed CFD issuers led to nearly A$40 million in refunds for more than 38,000 retail investors and forced broad compliance changes across the sector. The announcement came with ASIC Report 828, which examined how firms were distributing high-risk contracts for difference between October 2024 and December 2025.

ASIC said the review found widespread weaknesses in target-market controls, onboarding questionnaires, transaction reporting and compliance with the regulator’s CFD product intervention order. More than half of the sector was found to have breached the order by offering so-called margin discounts to retail clients who held offsetting long and short CFD positions, a setup ASIC said increased funding costs without creating a realistic profit path.

The regulator also said 48 issuers changed their OTC derivatives reporting after the review uncovered more than 70 million erroneous reports. In addition, 46 issuers improved website content and 42 implemented new or stronger monitoring of client trading outcomes and behaviour.

For traders, the message is not that CFDs are becoming safer by default. ASIC’s own figures say 68% of retail CFD investors lost money in the 2024 financial year, with losses exceeding A$458 million.

Why it matters

This is a direct reminder that regulators are still pressuring CFD issuers on distribution practices, disclosures and whether retail clients are being pushed into unsuitable high-risk trading.

What to watch next

ASIC said its CFD product intervention order expires in May 2027 unless remade. Traders and brokers should watch the regulator’s 2026 consultation on what comes next.