Regulatory Alerts2019-09-13
Regulations regarding product intervention with regard to binary options
Finansinspektionen, the Swedish financial supervisory authority, issued regulations prohibiting the marketing, distribution, and sale of binary options to retail clients. The prohibition applies to undertakings providing investment services under the Securities Market Act, defining binary options as cash-settled derivatives with fixed payouts based on predetermined conditions. An exemption exists for binary options meeting specific criteria, including a minimum 90-day term, a guaranteed minimum payout covering all costs, approved prospectuses, and restrictions on provider market risk and profit sources.
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