Ireland considers to prohibit Financial Contracts for Difference (CFDs)
The Central Bank of Ireland has issued today a press release to publish a Consultation on the protection of retail investors in relation to the distribution of CFDs.
Contracts for Difference (CFDs) are complex, leveraged, derivative instruments which enable investors to speculate on the short-term price movements of an underlying reference asset.
The Consultation Paper discusses the Central Bank’s concerns in relation to CFDs and outlines proposed measures currently under consideration which are aimed at protecting the interests of retail clients. Options under consideration include the prohibition of the sale or distribution of CFDs to retail clients in and from Ireland and the implementation of enhanced investor protection measures.
Director of Asset Management Supervision, Michael Hodson said “CFDs are complex products which are widely advertised to the retail mass market in an online setting. It is timely for the Central Bank to take further and decisive action in relation to CFDs given the evidence that the probability of loss for consumers is very high. This work builds on previous work in this area and proposes stronger protections for consumers.”
Read the Consultation HERE
Interested parties are invited to make a submission to cfdconsultation@centralbank.ie by 29 May 2017. Submissions will be published along with a feedback statement on www.centralbank.ie following the consultation period.
Source: Central Bank of Ireland
Related Posts
FCA statement on selling high-risk speculative investments to retail clients
FCA UK proposes permanent measures for retail CFDs and binary options
IOSCO consults on proposed policy measures to protect investors of OTC leveraged products
Central Bank of Ireland opposes the acquisition of Ava Trade by Playtech 
Central Bank of Ireland warns against unauthorised firm
