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

Crypto Insider, Opinion

Regulation: The Gold-Standard for Crypto-Assets

When the US supervisory authority SEC allowed an investment product referencing Bitcoin futures to be traded for the first time last October, this was widely perceived as a signal that cryptocurrencies had finally become established as an asset class.

Executive Moves

Solid hires FX industry veteran Darren Barker for multi-bank ECN’s business development

His curriculum vitae includes former roles at Cantor Fitzgerald, Sucden Financial, R.J. O’Brien, Jefferies, Natixis, Unicredit, J.P. Morgan, Raiffeisen, RBS International, UBS, Deutsche Bank, and Citi. 

Inside View

Mihails Safro, xpate CEO: Tips sellers need to know to overcome compliance obstacles

The unprecedented growth of e-commerce changed shopping dramatically last year. Many sellers suddenly faced a rapidly growing number of customers who had to stay home during the lockdown. When some clients adopted Netflix and Spotify as part of a daily routine, others ventured into online business. Robinhood alone saw a whopping 6 million rise in user numbers in 2 months. 

Institutional FX

BMLL delivers Level 3 data to Kepler Cheuvreux for order book analytics and algo performance

The solution covers more than 6.5 years of harmonised historical data from 65 venues and combines it with easy to use APIs and analytics libraries in a secure cloud environment. 

Digital Assets

Crypto Is An Invaluable Tool In The Fight Against Financial Oppression  

Crypto has proven itself to be much more than just a hot investment. Indeed, some say it’s poised to play a critical role in the future of finance

Executive Moves

Parameta appoints Head of Benchmark and Indices with a focus on ESG and rates

The firm said building out its benchmarks & indices offering will now be a core priority, with a particular focus on the ESG and rates space.

Digital Assets

WunderTrading brings automated crypto trading to United States

“Among developed countries, Americans are the heaviest users of cryptocurrencies, with 13% having invested in cryptocurrencies over the past year.”

Retail FX

ACY Securities sponsors child safety and family welfare charity Barnardos Australia

Sponsoring Barnardos will give ACY Securities and its employees an opportunity to do volunteer work through different outreach programs.

Digital Assets, Institutional FX

StoneX executes cash-settled BTC/USD swap for DriveWealth’s UK subsidiary

“Cash-settled swaps allow our clients to access the market movement of underlying digital assets without taking physical custody.”