The Cyprus Securities and Exchange Commission (CySEC) issued last week Circular C168 with subject “Updated version of ESMA’s Q&A document relating to the provision of CFDs and other speculative products to retail investors under MiFID”. With the said Circular, CySEC has interpreted ESMA’s Q&A, as this was published earlier in October 2016, in relation to the offering of speculative products to retail clients subject to MiFID.
The five main topics are:
- Bonus offering to be avoided;
- Deadline by 14th of December whereby CIFs must notify CySEC if any bonuses are offered to clients;
- CIFs must notify CySEC in advance in case they wish to promote new trading benefits;
- Withdrawal of bonus should be made within the same day;
- Use of leverage.
The Circular is available at the following link.
