FCA announce delay of publication of rules for CFD

Further to our article in December, the FCA have published a statement announcing that it is delaying publication of final rules for CFD products and CFD-like options. The FCA consulted on permanent rules to restrict the marketing, distribution and sale of CFDs and CFD-like options to retail consumers between December 2018 – February 2019.

The FCA indicated that it planned to publish a policy statement and final Handbook rules in April. It now plans to publish a policy statement and any final Handbook rules in summer 2019. The FCA’s final rules for CFDs will apply from the date that ESMA’s restrictions expire, if not earlier. Firms will be given at least two months to comply with the FCA’s new rules.

In the meantime, firms should continue to observe the ESMA’s decision notice that imposes temporary restrictions on the marketing, distribution or sale of CFDs to retail clients.