Regulatory Alerts2019-05-28
Added · Updated
FMA Regulation on Product Intervention Measures
The Austrian Financial Market Authority (FMA) issued this regulation to implement EU product intervention measures by prohibiting the marketing, distribution, or sale of binary options to retail clients and imposing strict operational requirements on Contracts for Difference (CFDs). Providers of CFDs must enforce tiered initial margin requirements based on the underlying asset, guarantee margin close-out and negative balance protection, ban client incentive programs, and include mandatory risk warnings in all marketing communications. The regulation mandates provider-specific or standardized risk warnings disclosing the percentage of retail accounts that lost money over the preceding twelve months, with the measures taking effect on 30 May 2019.