IG Group responds to FCA ruling on CFDs – cites shortcomings in marketing by overseas CFD and binary options firms

IG Group notes today’s Consultation Paper issued by the FCA (CP 16/40 – Enhancing conduct of business rules for firms providing contract for difference products to retail clients). IG firmly believes in robust and proportionate regulatory oversight of the CFD sector in the UK and Europe. The Company recognises that there are shortcomings in the […]

London-UK

IG Group notes today’s Consultation Paper issued by the FCA (CP 16/40 – Enhancing conduct of business rules for firms providing contract for difference products to retail clients).

IG firmly believes in robust and proportionate regulatory oversight of the CFD sector in the UK and Europe.

The Company recognises that there are shortcomings in the approach to the marketing of CFDs and binaries by certain firms, often operating from outside the UK.

The Company has operated and will continue to operate to the highest standards in the industry, and its initial view is that certain of the FCA proposals could enhance client outcomes.

The Company notes, however, that the FCA’s proposals do not appear to directly apply to firms operating from outside the UK offering CFDs and binaries to clients in the UK on a cross-border services passport from another EU member state.

IG will carefully consider the implications of the FCA Consultation Paper and the courses of action open to it, and will respond in accordance with the timeline provided of 7 March 2017.

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