Esma warns retail brokers over ‘pro’ push

Regulator warns brokers not to promote professional status to unqualified investors

Steven Maijoor - web.jpg
Steven Maijoor: Esma fears retail brokers are taking measures to circumvent EU and national restrictions on CFDs

The European Securities and Markets Authority (Esma) has issued a warning to retail brokers who offer contracts-for-difference (CFDs) to European Union clients about promoting the ‘professional’ classification among its clients as a means of circumventing leverage restrictions in force on the continent.

“Esma still has serious concerns about firms’ marketing, distribution or sale of CFDs to retail clients, and considers it necessary to remind CFD providers about some of the requirements

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