The
Cyprus Securities and Exchange Commission (CySEC) has issued a notice directing
the attention of Cyprus Investment Firms (CIFs) to the resolution by the
Comisión Nacional del Mercado de Valores (CNMV) on July 11, 2023, concerning
product intervention measures related to Contracts for Difference (CFDs) and
other leveraged products when offered to retail investors in Spain.
CySEC
urges financial firms to comply with the product intervention measures set by
CNMV. The
CNMV’s resolution, effective from August 3, 2023, introduces a set of
restrictions and prohibitions aimed at safeguarding retail investors in Spain.
These measures include the following:
-
Advertisement
Restrictions:
The CNMV resolution prohibits the advertisement of CFDs and other leveraged
instruments to retail investors. -
Remuneration and Sales Techniques: It places restrictions on
certain remuneration policies and sales techniques related to these financial
products. -
Intervention Measures: The CNMV’s resolution establishes intervention measures to regulate the marketing, sale, and
distribution of other leveraged instruments to retail investors.
C602 – Requirements of the Spanish Securities and Exchange Commission (the ‘CNMV’) regarding the product intervention measures relating to contract for differences (the ‘CFDs’) and other leveraged products to retail investors in Spain.https://t.co/2xyrG6BpDu
— CySEC (@CySEC_official) October 12, 2023
Countdown
to Compliance: CNMV’s CFD Measures to Take Effect Soon
It
is important to note that these measures apply to all entities authorized to
provide investment services in Spain. This includes any marketing,
distribution, and sale of CFDs and leveraged products to retail investors in
Spain, regardless of whether the investment firm has a branch in Spain or operates under
the freedom to provide services without establishing a physical presence in the
country.
CySEC, in response to the
CNMV’s resolution, strongly encourages all CIFs engaged in marketing,
distributing, and selling CFDs and other leveraged products to retail investors
in Spain to promptly take all necessary actions and measures to ensure strict
compliance with the CNMV‘s
regulatory requirements.
These
actions come as part of a broader trend in the European financial industry
where regulatory bodies are actively working to enhance investor protection,
especially for retail investors. As such, there will be stricter rules and controls on
complex and high-risk financial
products.
CIFs
operating in Spain are urged to closely monitor and adapt to these evolving
regulatory landscapes to maintain their compliance and safeguard the interests
of retail
investors in the region.
The
Cyprus Securities and Exchange Commission (CySEC) has issued a notice directing
the attention of Cyprus Investment Firms (CIFs) to the resolution by the
Comisión Nacional del Mercado de Valores (CNMV) on July 11, 2023, concerning
product intervention measures related to Contracts for Difference (CFDs) and
other leveraged products when offered to retail investors in Spain.
CySEC
urges financial firms to comply with the product intervention measures set by
CNMV. The
CNMV’s resolution, effective from August 3, 2023, introduces a set of
restrictions and prohibitions aimed at safeguarding retail investors in Spain.
These measures include the following:
-
Advertisement
Restrictions:
The CNMV resolution prohibits the advertisement of CFDs and other leveraged
instruments to retail investors. -
Remuneration and Sales Techniques: It places restrictions on
certain remuneration policies and sales techniques related to these financial
products. -
Intervention Measures: The CNMV’s resolution establishes intervention measures to regulate the marketing, sale, and
distribution of other leveraged instruments to retail investors.
C602 – Requirements of the Spanish Securities and Exchange Commission (the ‘CNMV’) regarding the product intervention measures relating to contract for differences (the ‘CFDs’) and other leveraged products to retail investors in Spain.https://t.co/2xyrG6BpDu
— CySEC (@CySEC_official) October 12, 2023
Countdown
to Compliance: CNMV’s CFD Measures to Take Effect Soon
It
is important to note that these measures apply to all entities authorized to
provide investment services in Spain. This includes any marketing,
distribution, and sale of CFDs and leveraged products to retail investors in
Spain, regardless of whether the investment firm has a branch in Spain or operates under
the freedom to provide services without establishing a physical presence in the
country.
CySEC, in response to the
CNMV’s resolution, strongly encourages all CIFs engaged in marketing,
distributing, and selling CFDs and other leveraged products to retail investors
in Spain to promptly take all necessary actions and measures to ensure strict
compliance with the CNMV‘s
regulatory requirements.
These
actions come as part of a broader trend in the European financial industry
where regulatory bodies are actively working to enhance investor protection,
especially for retail investors. As such, there will be stricter rules and controls on
complex and high-risk financial
products.
CIFs
operating in Spain are urged to closely monitor and adapt to these evolving
regulatory landscapes to maintain their compliance and safeguard the interests
of retail
investors in the region.
