The FCA has provided a statement update on permanent product intervention measures to restrict the sale, marketing and distribution of contracts for differences (CFDs) and CFD-like options sold to retail clients.
The FCA is still considering feedback to its earlier consultation and ESMA’s temporary restrictions continue to apply to FCA authorised firms and intends to publish a Policy Statement and any changes to the FCA Handbook during the summer. The FCA’s final rules for CFDs would apply from the date that ESMA’s restrictions expire, if not earlier. Firms that sell, market, or distribute CFD-like options would be given at least two months to comply with the new rules.
Firms must continue to comply with ESMA’s decision notice that imposes temporary restrictions on the marketing, distribution or sale of CFDs to retail clients. Should EU law cease to apply in the UK before ESMA’s decision notice expires, ESMA’s decision notices will continue to apply as part of UK law. The FCA’s supervision of firms in this sector will remain focused on compliance with ESMA’s measures.