FCA uncovers 'significant client risk' in retail CFD market

The FCA said the majority (76%) of retail customers who bought CFD products on either an advisory or discretionary basis lost money during the period it looked at. It added many of the 19 firms it had reviewed decided not to continue selling these products and it found one CFD provider whose arrangements were so poor that it would "take further action". CFDs are complex, high-risk instruments sold to retail investors on either an advisory or discretionary (including limited power of attorney) portfolio management basis. The FCA recently conducted a review of the market and assessed...