The Financial Conduct Authority (FCA) is proposing to clamp down on CFDs (contracts for difference) and similar financial products such as binary bets. CFDs are complex financial products that have historically been used by sophisticated traders. But they have been growing rapidly in usage by small retail “investors” and the FCA reports that 82% of them lose money based on a review of such accounts.
ShareSoc has now published it’s formal response to the FCA’s consultation on their proposals to tackle this problem. You can read it here: https://www.sharesoc.org/CFDs-Conduct-of-Business-Rules-Response-2017-03-03.pdf
In summary we support the FCA’s proposals with only minor reservations.
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