Regulatory Alerts2022-01-01
Consultation Paper No. 5 of 2022 - Proposals for Dealing in OTC Leveraged Products in Relation to Retail Clients
The Financial Services Regulatory Authority of Abu Dhabi Global Market proposes formalizing existing license conditions into explicit rules for firms offering over-the-counter leveraged products to retail clients. The proposals introduce enhanced margin requirements, prohibit binary options, ban referrals from unregulated third parties, and forbid funding accounts via credit cards to mitigate substantial loss risks. These measures align with international standards and include increased application and supervision fees to reflect the resource-intensive nature of this business area.
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