As you may be aware the FCA recently issued a consultation paper on ‘Enhancing conduct of business rules for firms offering Contract for Different products to retail clients’.
The consultation paper proposes a number of measures that ultimately are designed to improve investor protection by limiting the risks of CFD products for retail investors. The paper also suggests a number of measures that will raise conduct standards across the industry by ensuring CFD products are targeted at, and sold to, retail clients who understand the products and the risks involved.
The consultation paper issued by The FCA to its regulated firms, Saxo being one of them, provides a mechanism by which the firms can provide feedback on and discuss with the FCA potential policy approaches to address concerns relating to CFD products. The consultation paper outlines FCA proposals, asks questions and invites responses from their varied audiences, including the financial services industry and consumer organizations.
We welcome all initiatives that protect clients and, as we have always been a proponent of responsible trading underpinned by robust risk management, are naturally offering the FCA our full cooperation.