# ASIC consumer warnings on high-risk financial products

> Live situation record from CLSTR: https://clstr.news/situations/asic-consumer-warnings-on-high-risk-financial-products
> Updated: 2026-08-12T19:04:27.000Z. Sources: 6. Developments: 2.

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.”

## Timeline

### 2026-08-12: ASIC warns retail investors of risks from online brokers

Australia's ASIC has warned retail investors against high-risk products like futures and options offered by online brokers using incentives like cash vouchers and fee-free trades to attract novices.

3 sources. https://clstr.news/cluster/asic-warns-retail-investors-of-risks-from-online-brokers

### 2026-08-05: Australian regulator ASIC cautions consumers on offshore prediction markets

ASIC warns Australians that offshore prediction markets like Kalshi and Polymarket lack regulation, resemble gambling, and cause most users to lose money, urging safer investment options.

3 sources. https://clstr.news/cluster/australian-regulator-asic-cautions-consumers-on-offshore-prediction-markets

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Cite as: ASIC consumer warnings on high-risk financial products. CLSTR, https://clstr.news/situations/asic-consumer-warnings-on-high-risk-financial-products