The Financial Conduct Authority (FCA) has reminded firms of their client obligations when selling high-risk investment products after the introduction of tough EU rules on contract for difference (CFD) products.
European Securities and Markets Authority (ESMA) rules on the sale, marketing and distribution of CFDs, first announced in June, came into force today. In January, the FCA contacted all providers and distributors of CFD products to retail customers after discovering market failings which "may cause significant consumer harm". The FCA said it fully supported ESMA's measures - which are designed to protect retail investors - and added it was "concerned that firms may consider getting around ESMA's measures by selling other similarly complex products to retail clients". The FCA said, ...
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