Regulatory Alerts2025-10-15 | General Administrative Act regarding turbo certificatesBaFin General Administrative Act on Turbo Certificates for German Retail Clients
BaFin has issued a General Administrative Act imposing strict marketing and distribution restrictions on turbo certificates for retail clients domiciled in Germany. The regulation mandates clear pre-purchase risk warnings, prohibits monetary and non-monetary benefits tied to these products, and requires intermediaries to verify basic client knowledge through a standardized test valid for up to six months. These measures address a documented 74.2 percent loss ratio among German retail investors by curbing high-leverage, short-term trading and ensuring clients understand the immediate knock-out risks before acquiring turbo certificates.
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