Regulatory Alerts2022-02-17 | Consultation on a planned General Administrative Act regarding Futures with additional payment obligationsConsultation on a Planned General Administrative Act Regarding Futures with Additional Payment Obligations
BaFin has published a consultation on a planned General Administrative Act that restricts the marketing, distribution, and sale of futures with additional payment obligations to retail clients in Germany. The measure addresses significant investor protection concerns by prohibiting investment firms from offering these leveraged products when they require retail clients to cover losses exceeding their initial capital through mandatory additional payments. This product intervention, grounded in Article 42 of MiFIR, aims to mitigate uncapped loss risks for retail investors during periods of high market volatility and aligns with existing restrictions on CFDs.
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