Reforms proposed by the UK’s Financial Conduct
Authority (FCA) for contracts for difference (CFD) products
have caught the market off-guard, and received an
The regulator claims CFDs, like spread bets and rolling spot
foreign exchange products, are not well understood by retail
customers, and that 82% of clients lose money on them.
It’s part of a broader consumer protection drive,
but some in the market think it underestimates investors.
Trading CFDs: gambling or investing?Ashurst
partner Jake Green said the proposal, which wasn’t
mentioned in detailed briefings throughout the year, more
closely resembles product intervention than conduct regulation.
"The industry may consider the FCA’s position
misunderstands the clients using these services," he added.
"Many do understand the risk and are...