RG 227

Regulatory Guide 227 is issued by the Australian Securities and Investment Commission. It sets out 7 disclosure benchmarks to improve disclosure for retail investors.

Regulatory Guide 227 (RG 227) issued by Australian Securities and Investment Commission sets out 7 disclosure benchmarks for over the counter contracts for difference. Product Disclosure Statements must address the benchmarks on an "if not, why not" basis.

Client Qualification


BCR assesses a potential client’s qualifications and trading experience during the account opening process. Potential clients are required to read this PDS and declare they understand the risks involved in opening a CFD trading account with BCR.

Opening Collateral


This benchmark requires an issuer to only accept cash or cash equivalents (such as credit cards) as opening collateral when establishing an account. BCR accepts cash and credit cards. While BCR does not encourage trading using borrowed funds, we realize the additional funding option is appreciated by our clients. To limit fraud risk, BCR imposes a limit of $1,000 AUD on initial account funding done via credit card, and we also limit overall credit card funding to $5,000 AUD per month. Please note that exceptions may apply. You should be aware that trading on leverage with borrowed money exposes you to greater credit risks and cash flow risks. This includes the risk of ‘double leverage’.

You should be aware that trading on leverage with borrowed money exposes you to greater credit risks and cash flow risks. This includes the risk of 'double leverage'.

Counterparty Risk – Hedging


BCR maintains a written policy to manage its exposure to market risk from open positions. See Product Disclosure Statement Section 5.3 ("BCR as a Counter Party") for more information.

Counterparty Risk – Financial Resources


BCR maintains and applies policies to ensure that it meets the financial requirements of a holder of an Australian Financial Services License. See Product Disclosure Statement Section 5.2 (“BCR as Market Maker”) for more information. Copies of BCR’s latest audited financial statements and risk management procedures are available to prospective client upon request.

Client Money


BCR has a well-defined Client Money policy and holds client money in segregated trust accounts with an authorized deposit-taking institution. BCR does not use client money for any purpose, including meeting obligations incurred by us when hedging with other counterparties or meeting the trading obligations of other clients. See Product Disclosure Statement Section 2.13 ("Client Funds") for more information.

Suspended or halted underlying assets


BCR does not allow trading in positions when there is a trading halt in an Underlying Asset or Underlying Market. Please also note that BCR reserves the right to change the margin requirement on a position or close-out a position. For more information regarding BCR's discretion, please refer to Product Disclosure Statement Section 2.20 of this PDS.

Margin Calls


BCR’s Dealing Department will attempt to notify the client before a Margin Call occurs with a notification in the Mailbox function on the BCR Trader trading platform. The notification will be sent when the client’s account equity is nearing Margin Call levels.

Please note that while BCR will make an effort to notify you as soon as possible, we can not guarantee that positions will not be liquidated in situations where market conditions are extremely volatile. BCR recommends that you use the BCR Trader trading platform as the primary means of monitoring and managing your margin obligations.

You are responsible for monitoring your account at all times. Please see Product Disclosure Statement Section 2.17 (“Margin Call”) for more information.