Following recent launch of IC Shares, Australia-based forex broker IC Markets has been embroiled in a legal battle. Piper Alderman, a law firm, filed a class action lawsuit against the forex broker on behalf of Australian retail investors.
The lawsuit alleges that forex broker IC Markets engaged in unconscionable practices and used misleading strategies in the sale of Contracts for Difference (CFD), a derivative instrument with high leverage.
The legal action, covering the period from September 2017 to March 2021, claims inadequate disclosure of information, which caused substantial financial losses for investors.
IC Markets, a well-known no-requote broker, vehemently denies these allegations, and considers them to be "completely unfounded." The broker is determined to vigorously fight lawsuits, emphasizing its commitment to regulatory compliance and ethical service. The legal action is backed by UK-based fund Woodsford, highlighting a growing trend of litigation against CFD brokers in Australia.
In response to the lawsuit, IC Markets affirmed its dedication to transparency and regulatory compliance, aiming to demonstrate the integrity of its practices throughout the legal process. The outcome of this legal battle has the potential to reshape the CFD landscape in Australia, influencing regulatory measures and prompting tighter controls over broker practices. As investors monitor these developments closely, lawsuits could shed light on industry practices, holding responsible parties accountable for potential wrongdoing.
Keep an eye on our forex broker news for the latest information and insight into the evolving CFD trading landscape and regulatory changes in Australia.
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IC Market is an Australian broker with a global reputation. Some of its prominent features are 0.5-millisecond trading execution, raw spread, account types for beginners, scalpers, and EA users, as well as swap-free accounts.