Business

Panel agrees to clamp down on certain forex transactions

A government advisory panel agreed Wednesday to impose restrictions on foreign exchange trading involving low margin requirements, including a ban on forcible soliciting to protect small investors, according to panel members.

The agreement, made at a subcommittee meeting of the Financial System Council, also bans misleading advertisements. The restrictions come amid an increase in complaints from individuals incurring losses from the high-risk financial transactions.

Problems related to the financial products have increased because legal and supervisory mechanisms to protect investors have yet to be established, enabling dealers to forcibly solicit orders from people without financial knowledge or to carry out transactions without customer consent.

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