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

Digital Assets

Societe Generale launches its own cryptocurrency, EURCV

French banking giant Societe Generale has launched its own euro-pegged stablecoin, EUR CoinVertible (EURCV). This move by France’s third-largest bank reflects the increasing trend of mainstream financial institutions embracing cryptocurrencies on a global scale.

Executive Moves

Stelios Eleftheriou leaves NAGA Group to join BVNK

BVNK, the crypto-powered payments and banking platform for businesses, has appointed FX industry veteran Stelios Eleftheriou, who has a colorful career across the gaming industry, as Business Development Director (CFD & iGaming).

Retail FX introduce ETFs on UAE, Saudi stocks

Abu Dhabi-based broker has expanded its asset class offerings to include a new suite of Exchange-Traded Funds (ETFs) tailored for the United Arab Emirates (UAE) and Kingdom of Saudi Arabia (KSA) markets.

Institutional FX

Tradeweb Markets surges past $1.80 ADV in November

Tradeweb Markets Inc. (Nasdaq: TW) has reported a total trading volume of $38.2 trillion and a record average daily volume (ADV) of $1.80 trillion for November 2023. These figures mark a 59.2% year-over-year increase.

Inside View

A Mission in Accounting

Ismael Haber, an auditor and accountant, has made it his mission to help businesses improve the quality of their financial information by eliminating fraud and error. In the next five years, the demand for these specific financial services, being external financial audits, forensic accounting, and other fraud preventive and detective services is envisaged to increase.

Institutional FX

CME Group to launch new spot FX marketplace ‘CME FX Spot+’ in 2024

US derivatives exchange, CME Group today announced plans to introduce ‘CME FX Spot+’, a novel spot foreign exchange (FX) marketplace.


FMLS:2023: Andrew Mreana provides an exclusive sneak peek into cTrader’s 2024 innovations

cTrader’s focus for the next year would be on developing new tools for Introducing Brokers (IBs) and partners, particularly those related to algorithmic (algo) trading, the company’s head of growth told FinanceFeed in an exclusive interview at the Finance Magnates London Summit 2023.

Digital Assets

Grayscale’s Ethereum ETF stalls: SEC extends review to January 2024

The United States Securities and Exchange Commission (SEC) has extended the evaluation period for Grayscale’s proposed Ethereum spot ETF.

Institutional FX

BMLL completes China equity data offering: Shanghai, Shenzhen, and Hong Kong

“Demand for China data has never been higher. This is set against a general industry trend of increased market participant sophistication, and an increasing demand for quality historic market data to understand market microstructure and venue behaviour. Market participants need to get the full picture of market quality, liquidity and order book dynamics to ultimately make better informed decisions on the markets they trade and the venues they run.”