ESMA warns about binary option sale27th July 2016
ESMA has issued a warning about the sale of speculative products in order to highlight their associated risks
Organization of ESMA, which is located in Paris, the European Securities and Markets Authority, today launched another warning warning for the sale of contracts for difference (CFD),binary options, forex and other speculative products for retail investors who may not be aware of the risks associated with these types of products.
ESMA This warning was caused by the fact that they felt an increase in product sales was due to very aggressive sales and is a result of the increase in the growth of complaints from retail investors who have suffered significant losses.
Commenting on recent observations, Steven Maijoor, ESMA Chairman, said: “ESMA and national regulatory authorities still have serious concerns that the firms selling these products, which are inherently risky and speculative, for people who do not understand their ESMA and national. regulators are willing to work together to ensure that investors receive adequate protection in all EU countries. ”
(Of course no one talks about the protection of brokers. Dishonest investors who operate in violation of the broker’s work environment, avoiding and breaking their regulatory obligations for the sake of profit.)
The products under scrutiny are often advertised in the mass retail market using online platforms and sold without investment advice.
When the sale to see in an aggressive manner, or when the company is unable to fulfill its regulatory obligations, it creates an environment in which retail investors can suffer significant damage, including incidental damages. (Always wanted to know whether there are unforeseen losses)
ESMA has issued The Cyprus Investment Firms
ESMA has issued also highlighted regulatory actions taken against a number of Cypriot investment firms.
Since mid-2015 the organization coordinates the group of national regulatory authorities are focused on issues related to a number of Cypriot investment firms that sell contracts for difference and binary options across Europe.
Securities and Exchange Commission of Cyprus (CySEC) has imposed huge fines on, or have reached an agreement on the settlement of eight companies: Depaho, Reliantco, IronFX Global, WGM Services, Pegase Capital, Rodeler, Banc de Binary and Ouroboros derivatives, totaling 2.072 million euros. It also suspended the license PEGASE capital as reported by Finance magnates at the beginning of this year.
Stricter supervision by ESMA
ESMA also toughens oversight of the sale of all the European companies of speculative products to retail investors, so that the same standards are applied in all EU countries.
The last update that was recently published, gives an explanation to customers and potential customers of speculative products and appropriate assessment required when companies offer these products to retail customers.
(Our independent opinion – that these decisions will be pushed in this competitive market, many brokers out of the regulation, then they will be able to operate without restrictions and extra supervision, while leaving unprotected their customers and many are doing right now.)
They do not understand that these decisions, they can get brokers to look for new ways to attract customers. Give a to all work and all would be well. All are now gone from the regulation and will continue to work on even more aggressive sales
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