The European Securities and Markets Authority (‘ESMA’) has published Questions and Answers (‘Q&As’) as clarification in relation to the provision of speculative products to retail clients.
The Q&As provides general clarifications/recommendations and extensive examples as to the offering of speculative products (CFDs, Binary Options etc) to retail clients.
Special attention should be made to Section 3 of the Q&As (marketing strategies). It is recommended that regulated firms offering these types of services review their marketing strategies accordingly. Special attention should also be made to Section 4 of the Q&As in relation to the appropriateness testing prior to offering the services to the client.
You may view the document by following this link.
