ESMA prepares for speculative product control

ESMA has published a statement setting out what it is doing in relation to sales of CFDs, binary options and speculative products to retail investors. It feels that its guidance and FAQs published to date have not led to as great a supervisory convergence as it would wish and, as a result, is considering using its product intervention powers under MiFIR to address investor protection risks. It is not yet ready to publish its proposals, but has said they will include leverage limits, guaranteed limits on client losses and/or restrictions on marketing and distribution of the products. If ESMA decides to issue intervention measures, they can take effect from 3 January 2018.