The Financial Conduct Authority (FCA) has confirmed permanent restrictions on the sale, marketing and distribution of contracts for difference (CFD) and "CFD-like" options to retail investors, following a review of the products.
It follows temporary restrictions put in place by pan-European regulator ESMA, covering issues of maximum leverage, inducements and other concerns, which the FCA has now made permanent. FCA's Randell: UCITS rules sparked 'perfect storm' for Woodford Equity Income CFDs are contracts between an investor and an investment bank or a spread-betting firm, which see the parties exchange the difference between the opening and closing prices of a specified financial instrument at the end of the contract. Concerns have been raised in recent years about their suitability for the retail market. ...
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