Regulatory Alerts2020-02-03
ESMA Opinion on the Product Intervention Measure Relating to Binary Options Proposed by Finanstilsynet of Norway
The European Securities and Markets Authority Board of Supervisors issued an opinion on the permanent prohibition of binary options to retail clients proposed by Norway's Finanstilsynet. ESMA concluded that the national measure is justified and proportionate, aligning with previous EU-wide temporary bans that addressed significant investor protection concerns. The Authority further determined that it is necessary for other Member States to implement comparable stringent measures to prevent regulatory arbitrage and ensure consistent investor protection across the Union.
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