Regulatory Alerts2022-09-30 | General Administrative Act – Product intervention regarding FuturesBaFin General Administrative Act on Futures Product Intervention for German Retail Clients
The Federal Financial Supervisory Authority (BaFin) has issued a product intervention measure prohibiting investment firms from marketing, distributing, and selling futures to retail clients domiciled in Germany. This restriction, effective 1 January 2023, applies unless the transactions contractually exclude additional payment obligations, are confirmed as hedging purposes, or serve to settle existing open positions. BaFin implemented the measure to address significant investor protection concerns, including high loss rates, substantial leverage effects, and growing retail trading volumes that expose clients to potentially unlimited additional payment obligations.
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