Regulatory Alerts2016-05-26
FSMA Regulation governing the distribution of certain derivative financial instruments to consumers
The Belgian Financial Services and Markets Authority issued this regulation to prohibit the professional distribution of specific high-risk derivative financial instruments, such as binary options and short-term leveraged products, to retail consumers. The measure bans several aggressive distribution techniques, including referral rewards, bonuses tied to transaction volume, the use of external call centers, and payments via credit cards. These restrictions aim to protect investors from significant financial losses and conflicts of interest inherent in unregulated electronic trading platforms.
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