Response to ASIC AnnouncementSource: RNS
23 October 2020
LEI No: 2138003A5Q1M7ANOUD76
IG GROUP HOLDINGS PLC
ASIC statement on Contracts for Difference (CFD)
IG Group Holdings plc ("IG", "the Group", "the Company"), a global leader in online trading, notes that the Australian Securities and Investments Commission (ASIC) has today issued a statement (20-254 MR) following its consultation announced in August 2019 on product intervention measures relating to the provision of CFDs.
The measures, which will take effect from 29 March 2021 and apply to retail clients only, are broadly consistent with those proposed by ASIC in its initial consultation. The leverage restrictions are now in line with those already implemented by the European Securities and Markets Authority in August 2018.
As previously guided, these measures do not change the Group's financial targets of revenue growth in Core Markets of 3-5% over the medium term, and an incremental £100 million of revenue by the end of FY22 relating to the Significant Opportunities portfolio.
IG has a strong track record of working constructively with its regulators and adapting to regulatory change. The Group's continued ability to adapt to the pace and direction of evolving regulation is a long-term success factor.
For further information, please contact:
IG Group Investors IG Group Press FTI Consulting
Liz Scorer Ramon Kaur Neil Doyle / Ed Berry
020 7573 0727 07388 440127 020 3727 1141 / 1046
Disclaimer - forward-looking statements
This statement, prepared by IG Group Holdings plc (the "Company"), may contain forward-looking statements about the Company and its subsidiaries (the "Group"). Such forward-looking statements can be identified by the use of forward-looking terminology, including the terms "believes", "projects", "estimates", "plans", "anticipates", "targets", "aims", "continues", "expects", "intends", "hopes", "may", "will", "would", "could" or "should" or, in each case, their negative or other various or comparable terminology.
Forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors which are beyond the Company's control and are based on the Company's beliefs and expectations about future events as of the date the statements are made. If the assumptions on which the Group bases its forward-looking statements change, actual results may differ from those expressed in such statements. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements, including those set out under "Principal Risks" in the Company's annual report for the financial year ended 31 May 2019. The annual report can be found on the Company's website (www.iggroup.com).
Forward-looking statements speak only as of the date they are made. Except as required by applicable law and regulation, the Company undertakes no obligation to update these forward-looking statements. Nothing in this statement should be construed as a profit forecast.
IG empowers informed, decisive, adventurous, people to access opportunities in over 17,000 financial markets. With a strong focus on innovation and technology, the company puts client needs at the heart of everything it does.
IG's vision is to provide the world's best trading experience. Established in 1974 as one of the world's first providers of financial derivatives to retail traders, it continued leading the way by launching the world's first online and iPhone trading services.
IG is an award-winning, multi-product trading company which allows retail, professional and institutional clients to trade 24 hours a day, 7 days a week*. IG is the world's No.1 provider of CFDs** and a global leader in forex. It provides leveraged services with the option of limited-risk guarantees and offers an execution-only stock trading service in the UK, Australia, Germany, France, Ireland, Austria and the Netherlands. IG has a range of affordable, fully managed investment portfolios, which provide a comprehensive offering to investors and active traders.
IG is a member of the FTSE 250, with offices across Europe, including a Swiss bank, Africa, Asia-Pacific, the Middle East and North America. IG Group Holdings plc holds a long-term investment grade credit rating of BBB- with a stable outlook from Fitch Ratings.
*Excluding 10pm Friday (GMT) to 8am Saturday (GMT)
**Based on revenue excluding FX (from published financial statements, June 2020)