FXCM Allows Chinese Clients to Transfer Accounts Out of Australia

Reports in Chinese media suggest that FXCM is migrating Chinese clients to its subsidiary in the Bahamas.

According to a report released on Thursday by Sohu, a news outlet based in Beijing, traders that were using the services of the retail broker's Australian entity are now allowed to move. To be clear, traders have a choice – they are not being forced to move, it said.

The news site said that customers received an email from the broker, saying that they had until October 19th to apply for a new account with the Bahamas entity. Account transfers will also take place at the beginning of November.

Although Sohu's report focused on Chinese clients, it's likely that FXCM's Australian branch will be transferring all of its non-Aussie customers to other entities.

Clampdown in the Land Down Under

That's because of pressure from Australian authorities that has been increasing over the course of this year.

In April, the Australian Securities and Investments Commission said that brokers should stop doing business with non-domestic clients.

Though that applied to all foreign customers, ASIC ASIC The Australian Securities and Investments Commission (ASIC) is the prime regulator in Australia for corporate, markets, financial services, and consumer credit. It is empowered under the financial service laws to facilitate, regulate, and enforce Australian financial laws. The Australian Commission was set up and is administered under the Australian Securities and Investment Commission Act of 2001. ASIC was initially the Australian Securities Commission based on the 1989 ASC Act. Initially, the The Australian Securities and Investments Commission (ASIC) is the prime regulator in Australia for corporate, markets, financial services, and consumer credit. It is empowered under the financial service laws to facilitate, regulate, and enforce Australian financial laws. The Australian Commission was set up and is administered under the Australian Securities and Investment Commission Act of 2001. ASIC was initially the Australian Securities Commission based on the 1989 ASC Act. Initially, the Read this Term's decision to issue the statement appears to have been the result of pressure from Chinese authorities.

Since the regulator made that order, some brokers have actually done what was asked of them.

Several companies have emailed clients, telling them that they would no longer be able to access their Australian entities and that they would be transferred to other entities.

But not everyone has done the same.

IC Markets, for example, said in June that it would be migrating client accounts to its Seychelles entity. Shortly afterward, however, the broker backtracked and said that clients could continue trading with its Australian division.

ASIC did instruct brokers to stop providing services to foreign clients by the end of June, but that appears not to have happened, with companies split on whether or not they should actually follow the financial regulator's instructions.