France’s advertising body publishes new recommendations for Forex, CFD ads
ARPP outlines new recommendations for such ads, in line with the ban on certain types of advertising of high-risk financial products stipulated in the Sapin 2 law.
France’s advertising self-regulatory organization ARPP today published a set of revised recommendations for the advertising of certain financial products like Forex and CFDs. The aim of the update of the rules is to align them with the new requirements that came into force along with the Sapin 2 law, as well as to underline the need for the advertising of financial and investment products and services to be socially responsible.
The recommendations concern exclusively the advertising of financial services products like Forex and CFDs that are not covered by the ban introduced in the Sapin 2 law.
The advertisements should be easily identifiable as such. The company behind the ad should be explicitly stated. Also, the nature of the products and services advertised should be made clear, so that they do not get confused with other products or services. The ad should be realistic, containing no promises of limited or zero risks associated with the services advertised.
Any gains should not be presented as easy or realizable on a regular, systematic basis, without any risk. The ads should not promise that any form of training proposed by a broker would permit the customer to gain the same level of expertise in the markets as professionals have.
- Social responsibility
The recommendation also aims at securing that advertisements are socially responsible. That is why, such ads should not misstate the risks associated with these services regardless of the type of trading offered – virtual (demo) or real. Presenting inadequately the risks associated with bonuses is also prohibited.
The ads should not present these services as a game or make an analogy between trading and gaming.
The ads should not encourage the excessive use of these risky products, given that this may lead to a tricky financial situation for the consumer. In addition, the ads should not suggest that the use of these products may allow customers to receive regular revenues or to help them solve any financial problems.
The advertisements of this type should not be targeting minors, given the legal prohibition for minors to access and subscribe to such services. Such ads should not contain any elements which make them attractive to minors.