The Financial Conduct Authority (FCA) has unveiled a package of proposal measures aimed at tightening up standards around the sale of contract for difference (CFD) products to retail clients.
With an increasing number of firms operating in the CFD market, the FCA said it is concerned that more retail customers are opening and trading complex products such as spread bets and rolling spot foreign exchange products without adequately understanding them. According to the UK's financial watchdog, a representative sample of client accounts for CFD firms found that 82% of clients have lost money on the products. As a result, the regulator has proposed a number of measures aimed at enhancing consumer protection by limiting the risk of CFD products and increasing client communicati...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
