Regulator hits City Index

City Index, one of the nation's largest contract-for-difference (CFD) brokers, was required to appoint an independent expert after the corporate regulator identified several compliance flaws, including weaknesses in client money handling practices. The move follows concerns from the Australian Securities and Investments Commission (ASIC) about breaches of basic client money rules in CFD and foreign exchange (FX) markets.

Appointing an independent expert means an external specialist will review City Index’s compliance systems and client money handling practices, report on shortcomings, and recommend steps to fix them. This is a regulatory tool used to ensure an impartial assessment and to help the broker bring its operations into line with legal requirements.

The regulator identified several compliance flaws, most notably weaknesses in how client money was handled. These findings came as part of broader ASIC concerns about breaches of basic client money handling provisions in the CFD and FX markets.

The article reports weaknesses in client money handling but does not say client funds have been lost. The regulator’s requirement for an independent expert is intended to address those weaknesses. If you’re a client, it’s reasonable to stay informed, review your account activity, and contact City Index for reassurance and details about any protections in place.

For everyday investors, increased regulatory scrutiny can lead to stronger controls and better protection over time. In the short term you might see communications from your broker, changes to account procedures, or reviews of compliance processes. It’s a reminder to monitor your broker’s disclosures and keep personal records of transactions.

Check official communications from your broker and ASIC for updates, review your account statements, confirm how client money is held and protected, and contact the broker directly with any concerns. If you’re unsure about the risks, consider consulting a financial adviser or reducing exposure until the situation is clarified.

Yes. The article notes ASIC’s broader concern about breaches of client money handling provisions in CFD and FX markets, indicating the regulator is focused on ensuring industry-wide compliance rather than an isolated incident.

Official updates are typically published by the Australian Securities and Investments Commission (ASIC) and by City Index itself. Check ASIC’s website and City Index’s client notices or regulatory disclosures for the latest reports, remediation plans, and any statements from the independent expert.