Last week, Forex in Arabic mentioned IC Markets’ intention to transfer its non-Australian clients to its entity in the Seychelles in the following topic “Exclusive: IC Markets relocates some of its foreign clients to Seychelles. Today, Friday, the company sent an e-mail to all its "non-Australian" foreign customers alerting them about this decision.
The email states that in light of recent regulatory developments within Australia, International Capital Markets Pty Ltd, the Australian company, IC Market, cannot guarantee that it will be able to provide its services to clients residing outside Australia (“foreign clients”) and has therefore decided to discontinue providing the Services. For its overseas customers on June 30, 2019 (the date of transfer).
It also says that to reduce the impact on you as a client of IC Markets AU, they have opened a subsidiary entity in IC Markets SC Seychelles to provide financial services in accordance with Clause 29.6 of the Accounts Terms of IC Markets AU.
The email states that . IC Markets SC is the registered trading name of True ECN Trading Ltd (regulated under the Seychelles Financial Services Authority, Securities Dealer License Number: SD018). IC Markets (SC) which is an entity associated with IC Markets AU.
To make the transfer process more smooth, ICMarket has made the transfer process automatic, and this will not affect your account balance, existing orders, open positions, trading history and login to the client area. After the transfer, you will be able to continue trading as usual.
Options available to IC Markets clients
As I mentioned in the e-mail, a special section explains what options the customers have in this decision, and I have classified them into two options.
Transfer your account, open positions and client funds to ICMarket Seychelles on the date of transfer. In this case, no further action is required from you.
By continuing to trade on your account after June 30, 2019 (the date of the transfer), you agree to transfer your account details, account balance, current orders, open positions, trading history and client area login from IC Markets AU to IC Markets SC and you will be able to continue trading as a client of IC Markets SC on the exact same trading terms you are moving forward with as you have with IC Markets AU in the past.
the second choice:
Maintain your IC Markets AU account without transfer. If you choose not to migrate, you will need to unsubscribe from the migration process yourself and you can do so via the following link icmarkets.com and complete the form.
In this case IC Markets AU cannot guarantee that you will be able to continue trading on your account after June 30, 2019. Furthermore, it cannot guarantee that it will be able to continue to offer certain features of your account such as the current leverage.
We will also need to open a new account for you so that you can manage any changes that may occur in the future (eg leverage), this means that you will lose your account history. IC Markets AU will provide you with notice if we are unable to continue trading with you under the Australian Financial Services License after the June 30, 2019 transfer date.
ASIC pressure on brokerage firms
IC Markets is the third broker, regulated by the Australian Securities and Investments Commission (ASIC), that we have discovered will stop providing services to non-Australian clients. Last month, both Vantage FX and IFGM sent messages to clients telling them they would close or move their accounts soon. More Australian companies are expected to do the same.
This is because the Australian Securities and Investments Commission (ASIC) has been putting pressure on retail businesses to stop doing business outside Australia over the past two months. The regulator appears to be particularly concerned about brokers trying to access the Chinese market. In April, the Australian Parliament also granted powers to intervene in the production of ASIC, which could mean we will soon see leverage restrictions and marketing restrictions similar to those now in Europe.