Regulatory Alerts2023-07-13
Resolution of 11 July 2023 by the National Securities Market Commission on product intervention measures for CFDs and other leveraged products
The Spanish National Securities Market Commission (CNMV) issued a resolution on 11 July 2023 imposing stricter product intervention measures on Contracts for Difference (CFDs) and other leveraged financial instruments to enhance retail investor protection. The resolution prohibits all advertising, brand promotion, and sponsorship activities targeting retail clients or the general public, while banning aggressive commercial practices such as referral fees, call center outreach, and credit card deposits. Additionally, it mandates strict leverage limits and mandatory position closure protections for leveraged products, applying these restrictions to Spanish investment firms operating in other EU member states when dealing with cryptoasset underlyings.