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<ul><li>ASIC launches a lawsuit against eToro, alleging inadequate customer screening for its high-risk CFD products.</li><li>The legal action could have significant implications for trading platforms and their handling of volatile financial instruments like CFDs.</li><li>Deputy chair of ASIC, Sarah Court, believes retail clients face the risk of losing all their funds</li></ul>The Australian Securities and Investments Commission (ASIC) has <a href="https://asic.gov.au/about-asic/news-centre/find-a-media-release/2023-releases/23-204mr-asic-sues-etoro-in-its-first-design-and-distribution-action-to-protect-consumers-from-high-risk-cfd-products/" rel="noopener noreferrer nofollow">launched</a> a lawsuit against eToro, a prominent trading platform, over its handling of Contract for Difference (CFD) products. The regulator contends that eToro did not adequately screen its customers, thereby exposing retail investors to high-risk and volatile leveraged derivative contracts.CFDs are a type of bet on whether the price of assets, like cryptocurrencies, will go up or down. eToro lets its users make these kinds of bets. The legal action, initiated in the Federal Court, accuses eToro of marketing its CFD product to an overly broad audience and contravening design and distribution regulations. ASIC also alleged that the platform&#39;s screening test was inadequate to prevent unsuitable customers from trading the product.Sarah Court, the deputy chair of ASIC, voiced her disappointment with eToro&#39;s alleged non-compliance. She emphasized that CFD issuers should not modify their target markets to accommodate their existing client bases:Read full article at<a href="https://cryptotale.org/australian-regulator-takes-etoro-to-court-over-high-risk-cfd-products/" rel="noopener noreferrer nofollow"> CryptoTale.</a>

Australian Regulator Takes eToro to Court Over High-Risk CFD Products

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