TIDMPLUS
RNS Number : 0491D
Plus500 Limited
23 October 2020
23 October 2020
Plus500 Ltd.
("Plus500", "the Company" or "the Group" )
Response to ASIC announcement
Plus500, a leading technology platform for trading Contracts for
Difference ("CFDs") internationally, provides an update following
today's anticipated announcements from the Australian Securities
& Investment Commission, ("ASIC") in which it outlined its
proposed regulatory changes for the CFD industry in Australia,
which will be applied from 29 March 2021 . The principal changes
are:
-- leverage limits on the opening of a position by a retail client;
-- a margin close-out rule on a per account basis;
-- negative balance protection on a per account basis;
-- a restriction on the incentives offered to trade CFD's; and
-- a standardised risk warning.
The Company appreciated the opportunity to work with ASIC
throughout the consultation process and fully supports today's
announcement, in the interests of raising standards in the
industry, noting that it already operates in compliance with most
of these regulatory changes, in particular:
-- Plus500 has always offered negative balance protection to all customers in all its markets;
-- the Company has always offered maintenance margin levels to all customers in all its markets;
-- prominent risk disclosures are provided through all the
Company's marketing campaigns and on the Company's website.
Plus500 welcomes these changes proposed by ASIC, which the Board
believes will enhance the CFD trading landscape and provide
important additional protections for consumers.
The Board will continue to assess the potential impact on future
years, but believes that such impact is already incorporated in the
compiled analysts' consensus forecasts for Plus500 for FY 2021.
David Zruia, CEO, commented:
"We welcome these new regulations being introduced by ASIC,
which are broadly as expected following the announcement of its
consultation in August 2019. The regulations will be rapidly and
seamlessly adopted by Plus500, supported by the efficiency of our
industry-leading proprietary technology. The Company is already
compliant in most of the areas covered by the proposed regulation
and we will further adapt our business model where additional
changes are required. These changes, which are similar in spirit
and effect to the regulatory changes implemented in Europe in 2018,
act to bring further stability and uniformity to global industry
standards.
"We believe these regulatory changes will further enhance the
CFD trading landscape by benefitting the compliant industry
leaders, such as Plus500, and helping to protect our customers as
they access our products. In the meantime, we continue to aim to
grow and diversify our business by introducing new product lines,
and developing our presence in new geographies. "
For further details
Plus500 Ltd Elad Even-Chen, Chief Financial +972 4 8189503
Officer +44 7825 189088
Rob Gurner, Head of Investor ir@Plus500.com
Relations
MHP Communications +44 20 3128 8570
Reg Hoare, Rachel Mann, Plus500@mhpc.com
Pete Lambie
About Plus500
Plus500 operates a proprietary technology platform for
individual customers to trade CFDs internationally. The Group
offers more than 2,500 different underlying global financial
instruments, comprising equities, indices, commodities, options,
ETFs, foreign exchange and cryptocurrencies. Customers of Plus500
can trade CFDs in more than 50 countries and in 32 languages. The
trading platform is accessible from multiple operating systems
(Windows, iOS, Android and Surface) and web browsers. Plus500
retains operating licences and is regulated in the United Kingdom,
Australia, Cyprus, Israel, New Zealand, South Africa, Singapore and
the Seychelles.
Customer care is and has always been integral to Plus500, as
such, customers cannot be subject to negative balances. A free demo
account is available on an unlimited basis for platform users and
sophisticated risk management tools are provided free of charge to
manage leveraged exposure, and stop losses to help customers
protect profits, while limiting capital losses. Plus500 does not
utilise cold calling techniques and does not offer binary options.
Plus500 shares have a premium listing on the Main Market of the
London Stock Exchange (symbol: PLUS) and are a constituent of the
FTSE 250 index. www.plus500.com
Forward looking statements
This announcement contains statements that are or may be
forward-looking statements. All statements other than statements of
historical facts included in this announcement may be
forward-looking statements, including statements that relate to the
Company's future prospects, developments and strategies. The
Company does not accept any responsibility for the accuracy or
completeness of any information reported by the press or other
media, nor the fairness or appropriateness of any forecasts, views
or opinions express by the press or other media regarding the
Group. The Company makes no representation as to the
appropriateness, accuracy, completeness or reliability of any such
information or publication.
Forward-looking statements are identified by their use of terms
and phrases such as "believe", "targets", "expects", "aim",
"anticipate", "projects", "would", "could", "envisage", "estimate",
"intend", "may", "plan", "will" or the negative of those,
variations or comparable expressions, including references to
assumptions. The forward-looking statements in this announcement
are based on current expectations and are subject to known and
unknown risks and uncertainties that could cause actual results,
performance and achievements to differ materially from any results,
performance or achievements expressed or implied by such
forward-looking statements. Factors that may cause actual results
to differ materially from those expressed or implied by such
forward looking statements include, but are not limited to, those
described in the risk factors. These forward-looking statements are
based on numerous assumptions regarding the present and future
business strategies of such entity and the environment in which
each will operate in the future. All subsequent oral or written
forward-looking statements attributed to the Company or any persons
acting on its behalf are expressly qualified in their entirety by
the cautionary statement above. Each forward-looking statement
speaks only as at the date of this announcement. Except as required
by law, regulatory requirement, the Listing Rules and the
Disclosure Guidance and Transparency Rules, neither the Company nor
any other party intends to update or revise these forward-looking
statements, whether as a result of new information, future events
or otherwise.
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END
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October 23, 2020 04:42 ET (08:42 GMT)
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