Twenty-four CFD firms closing in crackdown on misuse of UK authorisation
Financial Conduct Authority
The FCA was concerned the firms were misusing their authorised status to mislead consumers. Three other firms are currently cancelling their permissions. The FCA has been challenging CFD firms that carry out little UK business but use their authorisation as a badge to make linked overseas companies look more trustworthy than they really are. This creates the misleading impression that consumers are dealing directly with a UK-regulated firm and benefit from UK protections when they do not. Firms have faced a range of actions, including restricting their trading abilities, requiring independent reviews of their business and opening enforcement investigations in the 2 most serious cases.
