Finsa Pty Ltd (“the Firm”, “we”, “us”, “our”), trading as Core Spreads Australia, operates a business that provides financial products in the form of Contracts for Difference and Spread Trades (“OTC Derivatives”). As a product issuer, the Firm issues OTC Derivatives to clients, including retail clients. We are authorised and regulated by the Australian Securities and Investments Commission (ASIC), with licence number 422661 and registered office at Level 36 Governor Phillip Tower, One Farrer Place, Sydney, NSW 2000.
This Target Market Determination (“TMD”) describes the target market of clients for our OTC Derivatives, and assists us in our client-centric approach to how we design and distribute our financial products. It has been written to address the design and distribution obligations under part 7.8A of the Corporations Act 2001. These obligations aim to assist clients with obtaining appropriate financial products, by requiring us to take a client-centric approach to design and distribution of our financial products.
If you are a retail client, you should refer to the relevant Product Disclosure Statement (PDS), Client Agreement and Financial Services Guide, before deciding whether to trade in OTC Derivatives. You can get a copy of these documents from our website, corespreads.com.au. Please note that this TMD does not apply to wholesale clients, including professional and sophisticated investors.
You should not base any decision to trade on the contents of this TMD, and this document is not suitable for the purpose of deciding whether to open an OTC Derivatives trading account or trade in OTC Derivatives.
OTC Derivatives are complex and leveraged financial products, which are traded over-the-counter (OTC) and not through a regulated market. OTC Derivatives allow clients to speculate on rising or falling prices of an underlying asset, and any resulting profit or loss will be based on the range of price movement, depending on whether it has moved with or against the client’s position.
We issue OTC Derivatives in respect of the following underlying assets:
For further information, please look at our Market Information Sheets:.
The lists below set out characteristics of clients considered suitable and unsuitable for trading in OTC Derivatives:
Suitable for Clients:
Clients falling under the above criteria are within our target market and may choose to trade in OTC Derivatives for the following purposes:
Unsuitable for Clients:
We issue and distribute our OTC Derivatives, and will take reasonable steps to ensure that they are distributed to the identified target market. This TMD will also apply to activities of any agents and representatives who distribute our products on our behalf.
To ensure that the distribution strategy is consistent with the identified target market, we have several processes in place to ensure that clients who are potential clients fall within the identified target market.
Our application process has automated systems in place to prevent the following from obtaining an account:
If you are eligible, then you will undergo a questionnaire that assesses your knowledge and experience.
If you can demonstrate through your answers that you have sufficient knowledge and experience, you are then eligible for an account, subject to further verification of your details as required.
If your answers indicate insufficient knowledge and experience, then you will be deemed unsuitable and prevented from obtaining a live account, though this will not bar you from obtaining a practice-and-learn account to improve your knowledge and experience.
We will also take reasonable steps to ensure that our marketing strategy targets potential clients falling within the identified target market above. Marketing material will be reviewed internally by our Compliance team with reference to our regulatory responsibilities and the target market characteristics above to ensure it is compliant and appropriate, to ensure it only captures prospective Clients that are within our target market.
We will perform regular reviews of this TMD, with the first review taking place in January 2022. Subsequent reviews will take place annually from this first review.
Triggers for additional reviews
We will also review the TMD where the following events take place: