FCA regulated CFD broker Plus500 Ltd (LON:PLUS) informed that it takes note of the contents of a “Dear CEO letter” that the Financial Conduct Authority (FCA) has issued last week as a public announcement following its review of the CFD market.
The announcement highlights the FCA’s concerns regarding firms who offer and distribute CFDs to retail customers on either an advisory or discretionary portfolio management basis.
Whilst the FCA issued this “Dear CEO letter” to all CFD providers, Plus500 announced that it did not receive any individual communication on the review findings as it does not and has never offered its products via these routes.
Asaf Elimelech, Plus500
Asaf Elimelech, Chief Executive of Plus500 commented:
The guidance contained in the FCA’s letter today is not directly applicable to our business model. However, we take note of the FCA’s comments and guidance and we continue to ensure best practice compliance with the current regulatory regimes in all the jurisdictions in which operate.
We continue to believe that these and other changes will enhance the CFD trading landscape and ultimately reduce the number of providers to a core of higher quality operators, of which we intend Plus500 to be amongst the leaders.