ASIC consumer warnings on high-risk financial products

The Australian Securities and Investments Commission (ASIC) has issued multiple warnings to retail investors regarding high-risk financial activities and unregulated platforms.

In early August 2026, ASIC updated its consumer guidance to caution Australians against offshore prediction markets, such as Kalshi and Polymarket. Commissioner Alan Kirkland stated these services operate outside Australian regulation, lack consumer protections, and are “effectively akin to gambling.” The regulator highlighted risks including market manipulation, insider trading, and high loss rates among retail participants.

Following a surveillance review of nine entities conducted in early 2026, ASIC also warned against online brokers that target novice investors with complex products like short-dated exchange traded options, futures, and fractional shares. The regulator noted that some providers use incentives such as fee-free trading or reward points to distract from the risks of leverage. As a result of the investigation, one broker exited the Australian market, two ceased offering specific high-risk products, and five implemented practice changes. Commissioner Simone Constant advised that investors should only engage with products they fully understand, noting that “there is no such thing as easy money.”