Sarah Pritchard, Executive director of Markets at FCA stated:
CFD firms must adhere to certain standards in order to protect customers and maintain market integrity. CFD providers that are authorized under this regime must sell their products properly. When the new consumer duty takes effect, they will have to make sure that the products provide good outcomes for consumers. We will not hesitate taking swift and aggressive action when we see harm.
FCA pointed out that there are many companies offering services overseas that have been associated with bad practices. Some of these firms use fake celebrity endorsements, aggressive marketing strategies, and offer investment advice without authorization. These companies use pressure tactics to get customers to invest large sums of money.
The FCA expects all the companies that received the letter to address the concerns raised by it by January 2023.
Earlier in November, the UK financial markets regulator, issued warning against the “gamification” of trading apps, expressing its growing concern that online business can use the design of trading applications to manipulate consumers in new ways.
The post FCA warns…