The permanent measures will come into effect from the 2nd of April, 2019.
After almost nine months of temporary measures in place, the Financial Conduct Authority (FCA) has confirmed the permanent ban on the sale of binary options to retail consumers this Friday.
The announcement today may not come as a huge surprise to market participants and follows from consultation feedback given to the British regulator. Therefore, from the 2nd of April 2019, all firms acting in or from the UK are prohibited from selling, Marketing or distributing binary options to retail consumers.
FCA Includes Securitised Binary Options in Ban
Overall, the FCA’s rules for binary options are basically the same as the European Securities and Markets Authority’s (ESMA) existing temporary restrictions on binary options, which were implemented on the 2nd of July, 2018.
The only difference, according to the British watchdog, is that its restrictions also apply to so-called ‘securitised binary options’ that were excluded from ESMA’s prohibition. The FCA has decided to also ban this product as it believes it poses the same risks for investors.
Because ESMA’s measures were EU-wide, UK firms already had to adhere to these prohibitions. This means, today’s announcement will not mean any immediate change for brokers operating within Britain, but it does remove the lingering uncertainty as to whether trading of binary options will be permitted again for retail clients.
Commenting on the measures, Christopher Woolard, Executive Director of Strategy & Competition at the FCA, said: “Binary options are gambling products dressed up as financial instruments. By confirming our ban today we are ensuring that investors don’t lose money from an inherently flawed product.”
Specifically, the British agency estimates that the permanent ban on binary options could save retail investors of up to £17 million per year in losses. It also believes that it may reduce the risk of fraudulent activities by entities claiming to offer binary options.
Nonetheless, the FCA warns: “UK consumers should continue to be alert for binary options investment scams and should only deal with financial services firms that are authorised by the FCA. As the sale of binary options to retail consumers is now prohibited, any firm offering binary options services to retail consumers is likely to be a scam.”
After almost nine months of temporary measures in place, the Financial Conduct Authority (FCA) has confirmed the permanent ban on the sale of binary options to retail consumers this Friday.
The announcement today may not come as a huge surprise to market participants and follows from consultation feedback given to the British regulator. Therefore, from the 2nd of April 2019, all firms acting in or from the UK are prohibited from selling, Marketing or distributing binary options to retail consumers.
FCA Includes Securitised Binary Options in Ban
Overall, the FCA’s rules for binary options are basically the same as the European Securities and Markets Authority’s (ESMA) existing temporary restrictions on binary options, which were implemented on the 2nd of July, 2018.
The only difference, according to the British watchdog, is that its restrictions also apply to so-called ‘securitised binary options’ that were excluded from ESMA’s prohibition. The FCA has decided to also ban this product as it believes it poses the same risks for investors.
Because ESMA’s measures were EU-wide, UK firms already had to adhere to these prohibitions. This means, today’s announcement will not mean any immediate change for brokers operating within Britain, but it does remove the lingering uncertainty as to whether trading of binary options will be permitted again for retail clients.
Commenting on the measures, Christopher Woolard, Executive Director of Strategy & Competition at the FCA, said: “Binary options are gambling products dressed up as financial instruments. By confirming our ban today we are ensuring that investors don’t lose money from an inherently flawed product.”
Specifically, the British agency estimates that the permanent ban on binary options could save retail investors of up to £17 million per year in losses. It also believes that it may reduce the risk of fraudulent activities by entities claiming to offer binary options.
Nonetheless, the FCA warns: “UK consumers should continue to be alert for binary options investment scams and should only deal with financial services firms that are authorised by the FCA. As the sale of binary options to retail consumers is now prohibited, any firm offering binary options services to retail consumers is likely to be a scam.”
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Finance Magnates Annual Awards 2024 | FM Awards 2024 Highlights
Finance Magnates Annual Awards 2024 | FM Awards 2024 Highlights
🎥Catch the best moments from the Finance Magnates Annual Awards Gala Dinner!
An evening where top names in finance came together to celebrate achievements, enjoy live music, and connect over a memorable dinner. Watch the highlights and feel the energy of our first gala in Cyprus!
Congratulations to all the winners for their dedication to excellence and leadership in the financial industry, including XM, Trading PRO, FP Markets, Deriv, FxPro, LATAM, Headway, ATFX, FBS, AMEGA, EC Markets, Axi
For more information about the 1st Finance Magnates Annual Awards, visit https://bit.ly/3Zb7wNz
#FinanceMagnatesGala #IndustryExcellence #GalaHighlights #FinanceMagnatesAnnualAwards #FinanceMagnatesAwards #CelebratingSuccess #FinanceCommunity
🎥Catch the best moments from the Finance Magnates Annual Awards Gala Dinner!
An evening where top names in finance came together to celebrate achievements, enjoy live music, and connect over a memorable dinner. Watch the highlights and feel the energy of our first gala in Cyprus!
Congratulations to all the winners for their dedication to excellence and leadership in the financial industry, including XM, Trading PRO, FP Markets, Deriv, FxPro, LATAM, Headway, ATFX, FBS, AMEGA, EC Markets, Axi
For more information about the 1st Finance Magnates Annual Awards, visit https://bit.ly/3Zb7wNz
#FinanceMagnatesGala #IndustryExcellence #GalaHighlights #FinanceMagnatesAnnualAwards #FinanceMagnatesAwards #CelebratingSuccess #FinanceCommunity
FMLS:24 | Shaping the Next Era of Financial Evolution
FMLS:24 | Shaping the Next Era of Financial Evolution
Welcome to FMLS:24 – the premier event where influential brands and leaders in trading, payments, fintech, and digital assets come together!
Join over 2,500 industry professionals, engage with 150+ expert speakers, and discover endless opportunities with 70+ top exhibitors. FMLS:24 is where senior executives and decision-makers gather to close deals, forge new partnerships, and strengthen connections with long-term clients.
Whether you’re in finance, technology, or payments, this summit is your gateway to future growth, meaningful collaborations, and industry-leading insights.
👉 Don't miss out – secure your ticket now at https://events.financemagnates.com/ZQEYy0?utm_source=youtube&utm_campaign=fmls24-awareness&utm_medium=video&RefId=MLS%3A24+Video+Promo
#fmls #fmls24 #fmevents #financemagnates #forex #payments #crypto #events #london #fintech #ai #generativeai #technology #onlinetrading #forex #investing #investors #tech
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Welcome to FMLS:24 – the premier event where influential brands and leaders in trading, payments, fintech, and digital assets come together!
Join over 2,500 industry professionals, engage with 150+ expert speakers, and discover endless opportunities with 70+ top exhibitors. FMLS:24 is where senior executives and decision-makers gather to close deals, forge new partnerships, and strengthen connections with long-term clients.
Whether you’re in finance, technology, or payments, this summit is your gateway to future growth, meaningful collaborations, and industry-leading insights.
👉 Don't miss out – secure your ticket now at https://events.financemagnates.com/ZQEYy0?utm_source=youtube&utm_campaign=fmls24-awareness&utm_medium=video&RefId=MLS%3A24+Video+Promo
#fmls #fmls24 #fmevents #financemagnates #forex #payments #crypto #events #london #fintech #ai #generativeai #technology #onlinetrading #forex #investing #investors #tech
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!