January 10, 2018 / 7:08 AM / 5 months ago

BRIEF-FCA publishes findings of review of CFD market in letter to firms

Jan 10 (Reuters) -

* ‍FCA PUBLISHES FINDINGS OF REVIEW OF CFD MARKET IN LETTER TO FIRMS​

* UK’S FCA- PROVIDERS AND DISTRIBUTORS OF CONTRACTS FOR DIFFERENCE (CFD) PRODUCTS: RESOLVING FAILINGS WHICH MAY CAUSE SIGNIFICANT CONSUMER HARM

* ‍MOST PROVIDERS AND DISTRIBUTORS IN OUR REVIEW WERE UNABLE TO OFFER A SATISFACTORY DEFINITION OF THEIR TARGET MARKET OR TO EXPLAIN HOW THEY ALIGN NEEDS OF THIS GROUP TO CFD PRODUCT THEY OFFERED​

* UK’S FCA- REVIEW UNCOVERED AREAS OF SERIOUS CONCERN THAT WE WANT TO HIGHLIGHT TO FIRMS ACROSS INDUSTRY

* UK’S FCA- EXPECT FIRMS TO ENSURE THAT THEIR ARRANGEMENTS MEET THESE REQUIREMENTS

* ‍FIRMS NEED TO IMPROVE A NUMBER OF OVERSIGHT AND CONTROL ARRANGEMENTS TO REACH STANDARDS WE WOULD CONSIDER ADEQUATE​

* ‍FOLLOWING OUR FEEDBACK TO THEM, SEVERAL FIRMS HAVE SAID THEY INTEND TO STOP PROVIDING CFDS TO FIRMS THAT DISTRIBUTE THIS PRODUCT ON AN ADVISORY OR DISCRETIONARY BASIS​

* ‍THIS REVIEW ALSO IDENTIFIED A CFD PROVIDER WHOSE ARRANGEMENTS WERE SO POOR THAT WE INTEND TO TAKE FURTHER ACTION.​ Source text for Eikon: Further company coverage: [ ] (Reporting By Anjuli Davies)

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