Dutch regulator AFM prepares advertising prohibition on Binary Options, Forex and CFDs
The Dutch regulator, Financial Markets Authority (AFM), has issued an announcement to inform that it starts a consultation period for responds in relation to proposed changes in advertisement of certain financial products considered to be highly risky.
According to AFM, the proposed advertising prohibition is an important step in the fight against certain financial products highly risky for consumers.
The list of financial products are:
- binary options
- CFDs with a possibility of residual debt
- CFDs with a leverage of 10 or higher
- Turbochargers with a leverage of 10 or higher
- Futures with a leverage of 10 or higher
“It is therefore a priority to protect consumers against the products that result in large losses or involve high costs. With the advertising ban, we have an important tool in the hands in the fight against toxic products. “ said Merel van Vroonhoven, President of the AFM.
The consultation by the AFM is open until 3 April 2017. Market participants are asked to respond by e-mail firstname.lastname@example.org.
Source: AFM (in Dutch)
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