MFSA restricts the sale of CFDs for retail clients


The Malta Financial Services Authority (MFSA) informed today that it has updated the Conduct of Business Rulebook, announcing permanent restrictions regarding the marketing, distribution or sale of Contracts for Differences (CFDs) to retail investors.

During the last years, the European market has witnessed a rapid increase in the marketing, distribution or sale of CFDs to retail clients across the EU.

EU regulators have already expressed widespread concerns on the increasing number of retail clients trading CFDs and having them losing their money.

MFSA’s Head of Conduct Supervision Dr Michelle Mizzi Buontempo, commented:

These rules, in line with the MFSA’s Vision, seek to strike a balance between the market’s need to provide fair competition and client choice, while at the same time protecting consumers of financial services, and safeguarding the integrity and stability of the financial system.

The complete announcement can be seen on MFSA’s official website.

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