On 26 April 2019, the FCA announced that it is delaying the publication of its final rules for contract for differences (CFDs) and CFD-like options sold to retail clients. The FCA consulted in December on making the European Securities and Markets Authority’s (ESMA) temporary product intervention measures for CFDs permanent in the UK, and in February, the FCA indicated in a statement (our blog is here) that it planned to publish a Policy Statement and any final Handbook rules in April 2019 for CFDs and CFD-like options.
The FCA notes that it is still considering the consultation feedback and so ESMA’s temporary restrictions continue to apply to FCA-authorised firms. The FCA plans to publish a Policy Statement and final Handbook rules this summer. The FCA’s final rules would then apply from the date that ESMA’s restrictions expire – if not earlier. Firms that sell, market, or distribute CFD-like options would be given at least two months to comply with the FCA’s new rules.