On 30 June 2021, the Dutch Authority for the Financial Markets (Autoriteit Financiële Markten, the AFM) published its decision introducing restrictions on the offering of turbos to Dutch retail investors. The restrictions will apply from 1 October 2021 onwards and include:

  • leverage limitations to reduce financial risk;
  • a mandatory risk warning for better-informed decisions; and
  • a prohibition on bonuses to counter perverse incentives.

The restrictions will apply to the offering of turbos in the Netherlands, regardless of the Member State in which the party making the offer is located. The restrictions do not apply to turbos offered from the Netherlands in other Member States.