Margin lenders differ on regulation call
The call from the ASX for closer regulation of the margin lending industry has received a lukewarm response from the industry. While the proposal has been welcomed by St George and Leveraged Equities, CommSec has said that greater regulation was not required and that comments by the ASX related specifically to companies that engaged in stock lending on top of the margin loan, such as Tricom. “We have a different margin lending model than potentially other participants in the market – we don’t hold our stocks in nominee accounts or stock lend,” said Matt Comyn, general manager at CommSec. Share market falls during January have been amplified with selling increased due to margin calls.
Source: The Australian Financial Review