CySEC Circular C602: CNMV Product Intervention Measures for CFDs and Leveraged Products in Spain

TO : Cyprus Investment Firms FROM : Cyprus Securities and Exchange Commission DATE : 12 Οκτωβρίου 2023 CIRCULAR No : C602 SUBJECT : Requirements of the Spanish Securities and Exchange Commission (the ‘CNMV’) regarding the product intervention measures relating to contract for differences (the ‘CFDs’) and other leveraged products to retail investors in Spain The Cyprus Securities and Exchange Commission (the ‘CySEC’) hereby draws the attention of the Cyprus Investment Firms (the ‘CIFs’), to the CNMV’s Resolution of 11 July 2023 on product intervention measures relating to CFDs and other leveraged products to retail investors in Spain1 . The CNMV’s Resolution forbids the advertisement of CFDs and other leveraged instruments to retail investors as well as certain remuneration policies and sales techniques. Moreover, intervention measures for the marketing, sale and distribution to retailers of other leveraged instruments are established. The measures applied from 3 August 2023 to all entities authorized to provide investment services in Spain. The measures are related to any marketing, distribution and sale of the subject instruments and services to retail investors in Spain, regardless of the origin of the investment firm marketing and distributing such products, or whether there is or not a branch in Spain (therefore including entities under the freedom to provide services without an establishment). CySEC urges all CIFs that are marketing, distributing and selling CFDs and other leveraged products to retail investors in Spain to take all appropriate actions and measures to adhere to the CNMV’s Resolution. Sincerely, Dr George Theocharides Chairman of Cyprus Securities and Exchange Commission 1 The press release published regarding the CNMV’s Resolution can be found here.