France’s ARPP issues only one opinion on ads of financial products in 2016

Maria Nikolova

France’s Jury of Advertising Ethics issued a total of 51 opinions on advertising in 2016, and non-compliance with financial products advertising regulations was the motif for only one opinion.

France has made the headlines thanks to the introduction of the Sapin 2 law, which, inter alia, prohibits the advertising of high-risk financial products such as binary options and CFDs with high leverage. The latest numbers provided by France’s advertising self-regulatory organization ARPP indicate that advertising of financial products was not amid the key topics for the body in 2016.

ARPP’s Annual Activity Report for 2016, which was published today, shows that ARPP’s Jury of Advertising Ethics (also known as JDP) issued 51 opinions in response to complaints received in 2016. Out of these, non-compliance with financial products advertising regulations was the motif for only one decision. Alcohol and beauty products advertising were higher on the agenda than financial products, according to the report.

The report also notes that advertising industry in France is over-regulated and new rules come about way too often. The new rules for financial products advertising have also added their weight to this burden.

Under the Sapin 2 law, all sorts of digital advertising of harmful financial products like binary options and high-leverage CFDs are prohibited. The ban also covers sponsorship deals that result in advertising of high-risk products. The latter, however, has not stopped some binary options brands from continuing their sports partnerships and targeting French investors with the help of these ads.

An ARPP newsletter from earlier this year shows that demand for legal consultations provided by the Jury of Advertising Ethics marked a rise of 4.9% in the 11 months to the end of November 2016, compared to the same period a year earlier. In 2016, the Jury provided 14,656 consultations compared to 13,972 consultations in the corresponding period in 2015.

The sharpest increase was seen in consultations concerning sponsorships – whooping 300% year over year. Other steep rises were registered in demand for consultations concerning advertising in movies and the Internet.

The newsletter did not mention any direct link between the rise in volume of consultation requests and the Sapin 2 law.

Read this next

Digital Assets

CrossTower acquires BEQUANT to help crypto industry reset and consolidate

“We are stabilizing an industry with incredible promise; regaining trust; and rebuilding the future of finance.”

Retail FX

Plum launches crypto offering for EU residents

Plum has added crypto investing to its range of investment options in France, Belgium, Spain, and Ireland. Residents there will be able to buy and sell cryptocurrencies in their app with just a few taps, via services provided by Bitpanda.

Retail FX

FX/CFD and Crypto broker Quantfury launches fractional trading of stocks, ETFs, commodities

“Quantfury is advancing its unmatched trading and investing conditions further by making it even more affordable to Quantfurians out there. Fractional trading mode opens up more trading opportunities to the Quantfury global audience of more than 400,000 Quantfurians.”

Industry News

SEC awards $20 million to whistleblower despite degree of culpability and reporting delay

The Securities and Exchange Commission has awarded a whistleblower with $20 million for providing new and critical information that led to the success of an enforcement action.

Institutional FX

Tradesmarter’s white label WOW TRADER integrates with TradingView

Tradesmarter’s white label trading platform solution WOW TRADER has integrated with TradingView, the high performance and mobile friendly charting tool.

Industry News

ASIC loses fee overcharging case against Commonwealth Bank of Australia

“ASIC pursued this case because we believed CBA did not have robust compliance systems to ensure customers were being correctly charged. ASIC will carefully consider the judgment and continue to work to ensure large financial institutions charge fees correctly and put their customers first.”

Digital Assets

Kraken pays $362K fine for onboarding Iranian users

Cryptocurrency exchange Kraken will pay $362,158 to settle its civil liability for apparent violations of US sanctions on countries like Iran, the Treasury Department’s Office of Foreign Assets Control said.

Digital Assets

Bankrupt lender BlockFi owes $275 million to FTX.US

Distressed crypto lender BlockFi has filed for Chapter 11 bankruptcy protection, nearly two weeks after halting withdrawals of customer deposits due to significant exposure to bankrupt exchange FTX.

Metaverse Gaming NFT

Astar Network powers WASM smart contract devs with Swanky toolkit

Blockchain innovation hub Astar Network is launching Swanky, an all-in-one tool for smart contract developers that bridges the elements of WebAssembly (WASM) ecosystem into a single interface.

<