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ESMA clarifies requirements for CFD risk warnings

“The regulator explains how a firm should ensure the prominence of its CFD risk warnings” reports financefeeds.com. Good practices that indicate firms have given sufficient prominence to a risk warning include: Examples of poor practice that will indicate firms have not given sufficient prominence to a risk warning include:. The updated Q&A section provides clarification on the application of the temporary product intervention measures in relation to the prominence of risk warning regarding offering of CFDs to retail clients.In deciding whether a particular risk warning is ‘prominent’, firms have to consider the target audience, the characteristics of CFDs and the likely information needs of the average recipient of the communication, ESMA says.
 
Source: financefeeds.com



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