ASIC Sues EToro Australia for Allowing Inexperienced Investors to Use High-risk Products

eToro's Australian division is facing a lawsuit from the Australian Securities and Investments Commission (ASIC) for allegedly allowing retail clients to use high-risk and volatile products improperly. ASIC is disappointed with eToro's lack of compliance and is seeking declarations, injunctions, and financial penalties, the regulator said in a statement. The regulator alleges that eToro's target market for CFDs included inexperienced investors and that the screening test was easy to pass, even for those who didn't understand the risks