FCA plans wider retail ban of CFDs following ESMA proposals

Could reduce annual losses by up to £451m

clock • 3 min read

The Financial Conduct Authority (FCA) is set to extend the retail market ban of contract for differences (CFDs) and binary options, which was proposed by pan-European regulator ESMA earlier this year, to include "closely substitutable products".

In March, ESMA introduced a number of EU-wide temporary measures for the provision of CFDs, including a ban on the sale or marketing of binary options to retail investors. Following a consultation as announced in January, the pan-European regulator introduced leverage limits and negative balance protection on CFDs, while also banning the marketing, distribution or sale of binary options to retail clients and restricted sales to retail clients of CFDs, including rolling spot forex and financial spread bets. CFDs are contracts between an investor and an investment bank or a spread-betti...

To continue reading this article...

Join Professional Adviser for free

  • 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

Join

 

Already a Professional Adviser member?

Login

More on Regulation

Advertising watchdog upholds complaint against car rental 'investment' firm

Advertising watchdog upholds complaint against car rental 'investment' firm

Second complaint to be upheld against the business in just over a month

Jen Frost
clock 07 May 2025 • 4 min read
FCA seeks feedback on cryptoasset trading regulation

FCA seeks feedback on cryptoasset trading regulation

Aims to build confidence in the sector

Patrick Brusnahan
clock 02 May 2025 • 1 min read
Schroders becomes first to adopt all four SDR labels

Schroders becomes first to adopt all four SDR labels

Includes 'Sustainability Mixed Goals' label

Linus Uhlig
clock 27 January 2025 • 1 min read