FCA sees 'serious risk of harm' in CFD products

In a letter addressed to the chief executives of CFD providers and distributors, the UK watchdog highlighted several areas of concern

Navigating rules and regulations
The review focused on processes, policies, controls and oversight arrangements at sample firms, which were then compared against relevant requirements in the FCA handbook

The Financial Conduct Authority warned consumers “may be at serious risk of harm” from poor practices in the contract for difference sector, in a so-called ‘Dear CEO’ letter to major providers in the sector.

The letter, published on January 10, follows a 12-month review conducted by the regulator between July 2015 and June 2016.

Now, the UK watchdog highlights a series of “areas of serious concern” and asks providers to consider whether their firms comply with the FCA’s requirements for

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