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...
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