Regulation

FCA proposes CFD crackdown

UK's financial regulator says 'contract for difference’ products are not fully understood by the many retail customers who trade them

FCA proposes CFD crackdown
Photo: iStock / FN Montage

The Financial Conduct Authority is planning to crack down on the sale of ‘contract for difference’ products, which it says are not fully understood by many retail customers who trade them.

CFDs, such as spread bets, are complex financial instruments offered by investment firms, usually through online platforms.

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