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FCA Announce Delay to Final Rules for CFD Products & CFD-like Options

FCA Announce delay to Final Rules on CFD products for Retail

29th April 2019

Following the FCA’s consultation last December and further statement in February about implementing their own product intervention measures for Retail CFDs, similar to ESMA’s, the UK Regulator has now announced that there will be a delay on publishing their final rules.

The FCA’s proposed interventions are the same in substance as ESMA’s, although they will also look to extend to other closely substitutable CFD-like products, as we have previously written about.

Whilst the FCA had intended to publish their final rules in a Policy Statement this month, since they are still considering the feedback from their consultation, they now plan to publish final rules within a Policy Statement over the summer.

The FCA would look to have their rules apply from the date that ESMA’s restrictions expire, if not earlier and it is thought that firms that sell, market or distribute CFD-like options would be given at least two months to comply with the FCA’s new rules.

Firms are reminded that they must continue to comply with ESMAs decision notice that imposes temporary restrictions on the marketing, sale or distribution of CFDs to retail clients and that should EU law cease to apply in the UK before ESMA’ decision notice expires, ESMA’s decision notices will continue to apply as part of UK law. The FCA have made it clear that their supervision of firms in this sector will remain focused on compliance with the measures put in place by ESMA.

Related Reading

• FCA Statement on ESMA’s CFD & Binary Option Product intervention measures ahead of Brexit
• Tough Rules for CFD & Spread Betters Continue
• Reminder for CFD & Spread Bet Firms on Financial Promotions
• ESMA Renews Restrictions of CFDs & Binary Options
• CP18/38 FCA Proposes Permanent Restriction Rules for Retail CFDs

Read our latest articles, news and views affecting compliance and regulation in the UK Financial Services Industry.