CySEC Sends Out Notice to Investment Firms Regarding New CFD Rules in Spain

The Cyprus Securities and Exchange Commission (CySEC) today (October 12) has drawn the attention of the Cyprus Investment Firms (the "CIFs") to the Spanish Securities and Exchange Commission's (CNMV's) Resolution of 11 July 2023 on product intervention measures relating to CFDs and other leveraged products to retail investors in Spain.

The Resolution from CNMV prohibits advertising CFDs and other leveraged instruments to retail investors, along with certain remuneration policies and sales practices. Additionally, it introduces intervention measures regarding the marketing, sale, and distribution of other leveraged instruments to retail customers.

The measures came into effect on August 3, 2023. They are applicable to all authorized entities providing investment services in Spain. These measures pertain to the marketing, distribution, and sale of the mentioned instruments and services to retail investors in Spain. It is irrelevant whether the investment firm marketing and distributing such products is based in Spain or has a branch there. This also includes entities operating under the freedom to provide services without an establishment.

CySEC is urging all CIFs involved in the marketing, distribution, and sale of CFDs and other leveraged products to retail investors in Spain to take necessary steps and implement suitable measures to comply with the CNMV's Resolution.