NZ allows 'financial heroin hits' to be sold to retail investors

NZ allows much higher gearing for retail investors than elsewhere. (Image: iStock)

Thu, 07 Apr 2022

A number of financial services providers continue to allow retail investors in New Zealand to gear up to 500-to-one with a product known as contracts for difference (CFDs).This is more than a year after Australia's regulator stepped in to limit gearing for retail investors buying CFDs to a maximum of 30-to-one, depending on the product, bringing Australia into line with regulatory rules in Britain and Europe.Before the Australian Securities and Investments Commission (ASIC) product intervention order, which took effect from March 29, 2021,...

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