igeurchfloss
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From one of Australian IG group members (our email [email protected])
Turns out that there is a 'responsible lending provision' also for Margin lending!
see http://www.fos.org.au/the-circular-5-home/responsible-lending-conduct-obligations-maladministration/ under these provisions the Financial Service provider must:
make reasonable inquiries about a retail client’s financial situation (s985G(1)(a));
take reasonable steps to verify the retail client’s financial situation (s985G(1)(b)); and, assess whether the margin lending facility will be unsuitable for the retail client (s985E(1)(c) and s985F). and the beauty of it all is that they must do that EVERY 90 days:
Under the legislation (sections 985E & F), the assessment of whether a facility will be unsuitable for the client must:
be made within 90 days before the facility is issued, and
cover the period during which the facility is issued.
this means IG just like all the other brokers, bluntly violate margin lending rules
Turns out that there is a 'responsible lending provision' also for Margin lending!
see http://www.fos.org.au/the-circular-5-home/responsible-lending-conduct-obligations-maladministration/ under these provisions the Financial Service provider must:
make reasonable inquiries about a retail client’s financial situation (s985G(1)(a));
take reasonable steps to verify the retail client’s financial situation (s985G(1)(b)); and, assess whether the margin lending facility will be unsuitable for the retail client (s985E(1)(c) and s985F). and the beauty of it all is that they must do that EVERY 90 days:
Under the legislation (sections 985E & F), the assessment of whether a facility will be unsuitable for the client must:
be made within 90 days before the facility is issued, and
cover the period during which the facility is issued.
this means IG just like all the other brokers, bluntly violate margin lending rules
