French Regulators Give Forex Trading a Double Dip Warning
Friday,14/03/2014|00:35GMTby
Adil Siddiqui
France's regulatory bodies supervising financial markets and advertising issued warnings notices to investors and service providers in a reinforcement of the country's stance on high risk investment products.
French regulatory authorities issued two warning notices to investors and service providers in a move that can be seen as a show of both watchdog's - financial and advertising - anti-FX agenda.
The two warnings issued independently by the financial regulator and the advertising regulator aim to reinforce the country's stance on high-risk investment products.
The Autorite Des Marches Financiers (AMF), France's financial services regulator warns investors on the potential harm of leveraged FX trading. At the same time, the Autorite De Regulation Professionnelle De La Publicite (ARPP), the advertising regulator notified providers of the best practises for marketing and promotion of investment products, including FX.
The AMF has been issuing a number of warnings and guidelines on its website for FX. On the 28th of January it updated its current hit list of non-regulated portals that solicit traders. In the current notification, issued on the 13th of March, investors are reminded of the specific risks of leveraged trading. The regulator outlines an example where it describes a 100 Euro investment using four hundred to one leverage and the consequence of a 10% move against the trader's position.
Anne-Claire Bennevault, Deputy Managing Director, Marketing and PR, Western Europe, Saxo Bank, shares her views on the notifications in a comment to Forex Magnates, she states: “The aim of the Autorité de Régulation Professionnelle de la Publicité’s (ARPP) report is to protect investors by stopping advertisers showing unauthorized campaigns. However, the individual brands are responsible for the suitability of their message and some “unregulated brokers” have tried to take advantage of non-financial media outlets.
Two years ago, a group of foreign brokers arrived on the French market using over-promising promotional messages for their Forex Trading online campaigns. These campaigns did not reference risk as well including logos of financial regulators to misguide prospective users.
ARPP has produced recommendations which must be strictly applied by financial brands in order to promote their products or services in an accurate and appropriate way.”
The opening paragraphs of the note state that: "Investing in forex seems more simple than it is," (translation from French). The note continues with clarification from the AMF on the mis-selling of quick gains in the FX markets.
UK-based brokers regulated under the FCA have been adhering to strict guidelines in the way margin products are promoted. A common practise by brokers is to upload a short version of the risk warning on the main body of a website or marketing collateral: "Losses can exceed your initial investment."
"The guidelines are no different to standard rules followed by us in the UK," explained one London-based FCA broker who deals with French investors.
Sanjay Mistry, a marketing consultant in the FX arena, states in a comment to Forex Magnates: "France hasn't been easy when designing campaigns due to the conservative nature of investors."
France is expected to develop its derivatives trading landscape over the next 18 months as traditional investors will explore alternative investments in light of the record low interest rates currently in place. Furthermore, the number of investors are expected to rise due to the abundance of news and information portals in the French language that have popped up over the last six years.
France has been a slow comer to the world of FX and CFD trading, hence the regulators' continuous concern with margin-based FX brokers. Forex Magnates expects France's FX trading environment to witness an increase of 8% over the next 12 months.
The AMF issued an additional warning on the 12th of March, which covers pyramid schemes and dubious investment programmes. It specifically mentions investments in the FX markets.
French regulatory authorities issued two warning notices to investors and service providers in a move that can be seen as a show of both watchdog's - financial and advertising - anti-FX agenda.
The two warnings issued independently by the financial regulator and the advertising regulator aim to reinforce the country's stance on high-risk investment products.
The Autorite Des Marches Financiers (AMF), France's financial services regulator warns investors on the potential harm of leveraged FX trading. At the same time, the Autorite De Regulation Professionnelle De La Publicite (ARPP), the advertising regulator notified providers of the best practises for marketing and promotion of investment products, including FX.
The AMF has been issuing a number of warnings and guidelines on its website for FX. On the 28th of January it updated its current hit list of non-regulated portals that solicit traders. In the current notification, issued on the 13th of March, investors are reminded of the specific risks of leveraged trading. The regulator outlines an example where it describes a 100 Euro investment using four hundred to one leverage and the consequence of a 10% move against the trader's position.
Anne-Claire Bennevault, Deputy Managing Director, Marketing and PR, Western Europe, Saxo Bank, shares her views on the notifications in a comment to Forex Magnates, she states: “The aim of the Autorité de Régulation Professionnelle de la Publicité’s (ARPP) report is to protect investors by stopping advertisers showing unauthorized campaigns. However, the individual brands are responsible for the suitability of their message and some “unregulated brokers” have tried to take advantage of non-financial media outlets.
Two years ago, a group of foreign brokers arrived on the French market using over-promising promotional messages for their Forex Trading online campaigns. These campaigns did not reference risk as well including logos of financial regulators to misguide prospective users.
ARPP has produced recommendations which must be strictly applied by financial brands in order to promote their products or services in an accurate and appropriate way.”
The opening paragraphs of the note state that: "Investing in forex seems more simple than it is," (translation from French). The note continues with clarification from the AMF on the mis-selling of quick gains in the FX markets.
UK-based brokers regulated under the FCA have been adhering to strict guidelines in the way margin products are promoted. A common practise by brokers is to upload a short version of the risk warning on the main body of a website or marketing collateral: "Losses can exceed your initial investment."
"The guidelines are no different to standard rules followed by us in the UK," explained one London-based FCA broker who deals with French investors.
Sanjay Mistry, a marketing consultant in the FX arena, states in a comment to Forex Magnates: "France hasn't been easy when designing campaigns due to the conservative nature of investors."
France is expected to develop its derivatives trading landscape over the next 18 months as traditional investors will explore alternative investments in light of the record low interest rates currently in place. Furthermore, the number of investors are expected to rise due to the abundance of news and information portals in the French language that have popped up over the last six years.
France has been a slow comer to the world of FX and CFD trading, hence the regulators' continuous concern with margin-based FX brokers. Forex Magnates expects France's FX trading environment to witness an increase of 8% over the next 12 months.
The AMF issued an additional warning on the 12th of March, which covers pyramid schemes and dubious investment programmes. It specifically mentions investments in the FX markets.
DHF Capital Posts Record $1 Billion Trading Volume as Risk Strategy Pays Off
Executive Interview with Andrian Coxon | Exante | FMLS:24
Executive Interview with Andrian Coxon | Exante | FMLS:24
Executive Interview with Andrian Coxon, CMO at Exante during FMLS:24
📣 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
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage.
Subscribe to our YouTube channel for more!
Executive Interview with Andrian Coxon, CMO at Exante during FMLS:24
📣 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
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage.
Subscribe to our YouTube channel for more!
Executive Interview with Siju Daniel & Wei Qiang Zhang | ATFX | FMLS:24
Executive Interview with Siju Daniel & Wei Qiang Zhang | ATFX | FMLS:24
Executive Interview with Siju Daniel, from ATFX and Wei Qiang Zhang from ATFX Connect | FMLS:24
📣 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
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage.
Subscribe to our YouTube channel for more!
Executive Interview with Siju Daniel, from ATFX and Wei Qiang Zhang from ATFX Connect | FMLS:24
📣 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
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage.
Subscribe to our YouTube channel for more!
Executive Interview with Adam Saward | EC Markets | FMLS:24
Executive Interview with Adam Saward | EC Markets | FMLS:24
Executive Interview with Adam Saward | EC Markets | FMLS:24
📣 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
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage.
Subscribe to our YouTube channel for more!
Executive Interview with Adam Saward | EC Markets | FMLS:24
📣 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
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage.
Subscribe to our YouTube channel for more!
Executive Interview with Johnny Khalil | Tickmill | FMLS:24
Executive Interview with Johnny Khalil | Tickmill | FMLS:24
Executive Interview with Johnny Khalil, Executive Director at Tickmill during FMLS:24
📣 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
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage.
Subscribe to our YouTube channel for more!
Executive Interview with Johnny Khalil, Executive Director at Tickmill during FMLS:24
📣 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
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage.
Subscribe to our YouTube channel for more!
How Modern Consumer Habits Are Transforming Global Payments
How Modern Consumer Habits Are Transforming Global Payments
The evolution of consumer expectations is reshaping the payments sphere worldwide. From seamless in-store purchases to instant cross-border transfers, the demand for secure and frictionless payment solutions is transforming how businesses and financial institutions approach transactions. But what does this mean for the future of payments, and how can organizations keep up?
On December 4, 2024, Finance Magnates, in partnership with @Visa Direct, hosted a live webinar dedicated to exploring these pressing questions. Industry experts will provided actionable insights into the trends, challenges, and opportunities in global payments, equipping attendees with the tools they need heading into 2025.
DISCLAIMER:
The views and opinions expressed in this webinar are those of the speakers and do not necessarily reflect the views or positions of any entities they represent (including, but not limited to their respective parent companies or affiliates). The views and opinions expressed are based upon information the speakers consider reliable and are intended for informational purposes only and should not be relied upon for operational, marketing, legal, technical, tax, financial or other advice. No party (speaker or the entities they represent) makes any warranty or representation as to the completeness or accuracy of the information within this webinar, nor assumes any liability or responsibility that may result from reliance on such information. The information contained herein is not intended as investment or legal advice, and readers are encouraged to seek the advice of a competent professional where such advice is required.
#FinanceMagnates #VisaDirect #GlobalPayments #FutureOfPayments #PaymentsInnovation #CrossBorderPayments #SecurePayments #SeamlessTransactions #FinancialInsights #PaymentsTrends #WebinarRecap #BusinessFinance #DigitalPayments #FintechInsights #Payments2025
The evolution of consumer expectations is reshaping the payments sphere worldwide. From seamless in-store purchases to instant cross-border transfers, the demand for secure and frictionless payment solutions is transforming how businesses and financial institutions approach transactions. But what does this mean for the future of payments, and how can organizations keep up?
On December 4, 2024, Finance Magnates, in partnership with @Visa Direct, hosted a live webinar dedicated to exploring these pressing questions. Industry experts will provided actionable insights into the trends, challenges, and opportunities in global payments, equipping attendees with the tools they need heading into 2025.
DISCLAIMER:
The views and opinions expressed in this webinar are those of the speakers and do not necessarily reflect the views or positions of any entities they represent (including, but not limited to their respective parent companies or affiliates). The views and opinions expressed are based upon information the speakers consider reliable and are intended for informational purposes only and should not be relied upon for operational, marketing, legal, technical, tax, financial or other advice. No party (speaker or the entities they represent) makes any warranty or representation as to the completeness or accuracy of the information within this webinar, nor assumes any liability or responsibility that may result from reliance on such information. The information contained herein is not intended as investment or legal advice, and readers are encouraged to seek the advice of a competent professional where such advice is required.
#FinanceMagnates #VisaDirect #GlobalPayments #FutureOfPayments #PaymentsInnovation #CrossBorderPayments #SecurePayments #SeamlessTransactions #FinancialInsights #PaymentsTrends #WebinarRecap #BusinessFinance #DigitalPayments #FintechInsights #Payments2025