View more on these topics

FCA reissues warning to firms dodging high-risk investment duties

The FCA has reiterated its warning to firms selling high-risk, speculative products on the back of intervention from EU regulators to protect consumers.

The European Securities and Markets Authority tightened its rules over how so-called “contracts for difference” products – which include spread bets and rolling spot foreign exchange products – could be distributed to retail clients in June.

Those rules coming into force from today.

In a statement this morning, the FCA said it fully supports Esma’s move, but cautioned firms that it would be vigilant over those trying to avoid the new CFD rules by swapping in other high-risk products.

Features including leverage, complexity and the potential for large trading losses to retail clients that are common to CFDs remain of concern to the FCA, it says, with Esma noting products such as “turbo certificates” as comparable in some ways to CFDs.

The FCA says: “ESMA’s intervention is focused on CFDs, but we remind firms of their existing obligations. In particular, if a firm is considering marketing, selling or distributing alternative products, it should pay attention to conduct of business requirements.

“These include rules on the client’s best interests, communications with clients and financial promotions, and suitability and appropriateness. We also expect firms to consider carefully whether they can satisfy their relevant product governance obligations.”

Recommended

Aviva-signage-building-2013-700.jpg

Aviva to start shares compensation this week

Aviva is set to start refunding investors who lost money in its preference share fiasco earlier this year. According to The Times, the payout scheme will open this week. In its full-year results in March, Aviva said it could cancel existing preference shares as one option for returning capital to shareholders. However, the provider was met […]

MM-AutumnBudgetBanner
3

Lifetime allowance 2018/19 increase confirmed but pensions absent

The Government has confirmed that the lifetime allowance 2018/19 will rise in line with inflation, but savers have been offered little else in the Autumn Budget. The lifetime allowance will increase from £1m to £1,030,000 to match CPI from 2018/19.  Though the maximum amount the can be saved each year into a Junior Isa or […]

FCA proposes new rules for P2P lenders

The Financial Conduct Authority has opened a consultation on new rules for loan-based crowdfunding platforms as a first step to fix “increasingly complex” business models. The regulator today issued an update on its review of the loan-based and investment-based crowdfunding market. The updates are the first since a sector review in December 2016 and ask for responses […]

SJP drops Aberdeen Standard from £286m fund

St James’s Place has replaced Aberdeen Standard Investments as appointed manager of its £286m Ethical fund. The fund changes, which will take effect later this year, include a manager switch to Impax Asset Management and name change to the Sustainable and Responsible Equity fund. The group says the name change is to “better describe its […]

Investment Clock Strategy Update

In his latest Investment Clock report Trevor Greetham, Head of Multi Asset at Royal London Asset Management, explains why he is ‘ready to buy dips’. Read the report here: The value of investments and the income from them is not guaranteed and may go down as well as up and investors may not get back […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com