CySEC calls for attention with regards to French law changes. Will CIFs comply?

Maria Nikolova

In a Circular to CIFs, the Cypriot regulator draws the attention towards the changes to French laws that prohibit digital advertising of high-risk financial products.

The Cyprus Securities and Exchange Commission (CySEC) has earlier today published a Circular to Cyprus Investment Firms (CIFs) that target French clients informing them of the need to comply with France’s new regulations concerning digital advertising of high-risk investment products.

As most FinanceFeeds’ readers already know, the Sapin 2 law, which came into force in December 2016, prohibits digital marketing of high-risk financial products like binary options. All partnerships that result in advertising of such products are also prohibited.

The CySEC advises CIFs with operations in France and/or offering their services to French clients to consult with their legal departments regarding the necessary legal actions to ensure compliance with the legislation.

CIFs may visit the website of France’s financial markets regulator to find out more information on the aforementioned.

Thus far, a number of CySEC-regulated CIFs, especially binary options firms, have been neglecting the legal provisions stipulated in the Sapin 2 law. Some binary options brokers have kept promoting their services to French clientele via sports partnerships.

24option displays an advert of its partnership with Juventus FC on its French website, whereas Stockpair continues to target French traders via its partnership with German football legend Lothar Matthäus. Anyoption uses Brazilian football star Roberto Carlos to market its services to French traders, with an advert placed on its front page including its French version. OptionWeb cannot let go of its partnership with PSG. Another “investment firm” I cannot name for legal reasons (the respective FinanceFeeds article was taken down following the expert intervention by the lawyers of the investment firm in question) targets French traders with a racing team advert.

Here is the deal. While the regulators are reluctant to implement the law (fine the companies that violate it, take away licenses, ban websites, etc) the industry of online trading falls prey to firms that neglect the rules and abuse all legal loopholes. In the case of the Sapin 2 law and sports sponsorships, many investment firms that continue with the type of advertising that is prohibited by the law refer to their right to keep their partnerships running until June 30, 2017, although this “grace period” applies only to partnerships active through July 1, 2016. Plus, it shows that these companies are not in a hurry to comply with a law – I leave the respected readers to decide what such attitude signifies in terms of corporate ethics.

Read this next

Industry News

FINRA to publish transaction details in U.S. Treasury securities

“Consistent with our longstanding practice, FINRA is introducing greater transparency in a calibrated and careful manner, benefiting liquidity and resilience in this critical market while also mitigating potential information leakage concerns.”

Institutional FX

OpenYield launches “cheap and easy” fixed income trading for brokers

“We’re on a mission to make bonds cheap and easy to trade, and are excited about the opportunity to build generational capital markets infrastructure.”

Digital Assets

Sumsub and Mercuryo publish a guide for VASPs: “Mastering Travel Rule Compliance”

“At Sumsub, we’ve concentrated our efforts on filling the gap in understanding the complexity of Travel Rule regulation and helping organizations find the best solution to stay safe and compliant while minimizing costs and avoiding potential risks of non-compliance. This guide we created with Mercuryo, our trusted partner, is the ultimate navigation tool all VASPs can consult.”

Digital Assets

Bitget Wallet Leads with Record Swap Volume & New Crypto Innovations

This week, Bitget Wallet achieved a milestone by surpassing Metamask with a record 388,757 Swap order transactions, securing the global lead. The significant 7-day trading volume, almost 68,000 more than its rival, underscores its liquidity and user trust. This robust activity signals Bitget Wallet’s prominent role and reliability in the dynamic crypto market.

Digital Assets

Embarking on a Digital Currency Journey

Imagine you’ve stumbled upon a treasure map, leading you to untold riches hidden in the vastness of the internet. Instead of gold coins and jewel-encrusted goblets, this treasure comes in the form of digital currencies, the modern-day loot coveted by many.

Reviews

Traders Union Experts Share The Trading Analyst Review For 2024

Navigating options trading in rapidly shifting markets poses a considerable challenge. This is where options trading alert services become invaluable. They aid traders in keeping abreast of evolving opportunities and market trends. In this assessment, Traders Union experts scrutinize The Trading Analyst alert service to ascertain its efficacy. 

Digital Assets

BlockDAG’s Presale Achieves $9.9M: Aiming For A 5000-Fold ROI As Cardano’s Price Rises And Fantom Launches Sonic

Explore Cardano’s surge, Sonic’s efficiency, and why BlockDAG’s growth makes it the top crypto choice. A deep dive into the future of blockchain investments.

Digital Assets

US, UK probe $20 billion Tether transfers tied to Russian exchange.

U.S. and UK authorities are investigating the movement of $20 billion in the USD-pegged stablecoin tether (USDT) through Moscow-based exchange Garantex.

Digital Assets

BlockDAG Presale Raises $9.9M as Batch 5 Nears Sell-Out Amid Bonk’s Fluctuating Trading Volume & Spell’s Bullish Price

Explore BONK’s trading volume, SPELL’s market shifts, and why BlockDAG’s 10,000 ROI makes it an ideal crypto for savvy investors in 2024.

<