Jan 10 (Reuters) - There are “areas of serious concern” in Britain’s contracts for differences (CFDs) market, the country’s financial watchdog said on Wednesday following a review.
The Financial Conduct Authority (FCA) said it had sent a letter to all providers and distributors of these products to retail customers.
The majority of retail customers who bought CFD products on either an advisory or discretionary basis lost money, the FCA said after it reviewed 34 firms over a 12 month period.
Shares in leading British spread-betting firms fell last year after the FCA warned it had serious concerns about retail buying of CFD products.
The European Securities and Markets Authority last month said it was considering restricting the marketing, distribution or sale to retail clients of CFD products.
$1 = 0.7395 pounds Reporting by Noor Zainab Hussain in Bengaluru; editing by Jason Neely