Shearman & Sterling LLP | Financial Regulatory Developments Focus | UK Regulator Delays Final Product Intervention Measures on Contracts for Difference
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  • UK Regulator Delays Final Product Intervention Measures on Contracts for Difference
    04/26/2019
    The Financial Conduct Authority has published a statement on the delay to publication of final rules for contracts for difference products and CfD-like options. The FCA has consulted on its proposals to make European Securities and Markets Authority's temporary product intervention measures permanent in the U.K. The FCA's proposed interventions are the same in substance as ESMA's, although it is also proposing to apply its rules to closely substitutable products and on extending these measures to exchange-traded derivatives. The consultation closed on February 7, 2019.

    The FCA had announced in February that it intended to publish its final product intervention rules for CfDs and CfD-like options in April and for binary options in March. The FCA published its Policy Statement and final rules banning the sale of binary options to retail clients on March 29, 2019. In its latest statement, the FCA states that it is still considering feedback on its proposals for CfDs and that it will publish a Policy Statement and final rules in summer this year. The FCA confirms that its final rules would apply when the EU measures next expire or earlier but that firms will have at least two months to comply with the new rules. The FCA states that firms must continue to comply with ESMA's temporary product intervention measures in the interim period.

    View the statement.

    View details of the FCA's February announcement.

    View details of the FCA's consultation on CfD rules.

    View details of the FCA's final product intervention measures for retail binary options.

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