Regulatory Alerts2025-11-26
ESMA Opinion on German BaFin's Product Intervention Measures for Turbo Certificates
The European Securities and Markets Authority (ESMA) issued an opinion on 24 November 2025 regarding proposed permanent restrictions by the German Federal Financial Supervisory Authority (BaFin) on the marketing and sale of turbo certificates to retail clients in Germany. BaFin justified these measures based on a market study revealing that 74.2% of German retail clients lost money trading turbos, resulting in aggregate losses exceeding EUR 3.4 billion over a five-year period. The proposed intervention requires standardized risk warnings, prohibits monetary or non-monetary benefits for turbo acquisitions, and mandates a standardized knowledge test for retail investors.
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