The FCA has published a statement that provides an update on its policy work on contract for difference products (CFDs) and Consultation Paper 16/40: Enhancing conduct of business rules for firms providing CFD products to retail clients.
The statement follows an earlier announcement made by the European Securities and Markets Authority (ESMA) on its consideration of product intervention measures under Article 40 of MiFIR.
In light of the progress that ESMA has made in its consideration of the use of its MiFIR product intervention powers, the FCA has decided to delay making final conduct rules for UK firms providing CFDs to retail clients, pending the outcome of ESMA’s discussions.
However, in the event of a significant delay to possible ESMA measures, the FCA would reconsider making final rules at a domestic level in the first half of 2018.
The FCA also states that it has published a statement on its website concerning the outcome of its further review of appropriateness tests as a follow up to its Dear CEO letter in February 2016. The FCA also expects to publish the outcomes of thematic work on CFD intermediaries in the near future.
View FCA statement on contract for difference products and CP16/40, 29 June 2017