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  • Is the CFD industry facing the perfect storm? Download

Is the CFD industry facing the perfect storm?

05 February 2019

Although the UK-based Contracts for Difference (CFD) industry has weathered European and domestic regulatory pressures so far, 2019 brings new challenges. Will the combined impact of Brexit and the Financial Conduct Authority’s (FCA) proposed reforms create the perfect storm?

Impending regulatory changes – such as those set out in the FCA’s December 2018 consultation paper (CP18/38) – and the future geopolitical environment could have a major impact on the CFD
sector. So how might the industry respond?

Following a series of successful CFD breakfast forums over the past few years, we held our latest breakfast forum in January 2019, bringing together Chief Executives, Heads of Compliance and other senior representatives from major international players and fast growing start-up firms.

Our discussions focused on:

  • The proposed ban on inducements and what actually constitutes a ‘non-monetary benefit’
  • what forms of payment should be allowed for CFD products
  • whether the proposed leverage limits would achieve the FCA’s objectives
  • whether the intended benefits for the retails sector will actually be realised
  • how firms might service clients after a hard Brexit.

Download our report below to explore the findings.

If you would like to discuss this report further or any wider sector issues, please contact Lorraine Bay or speak to your usual local BDO adviser.