UK online trading leader IG Group Holdings plc (LON:IGG) just shared its opinion on the impact of new requirements from the AMF, a supervisor of IG’s activities, on the advertising of its products in France.
Following the passing of the Sapin 2 law at the end of 2016, the general rulebook of the AMF has now been adopted. The AMF has confirmed certain restrictions on electronic marketing of CFDs to retail clients in France. The key marketing restrictions do not impact the accounts that IG now offers to new clients in France, because IG’s accounts provide a limited loss-by-position guarantee as required, and therefore also a guarantee of no negative balance.
The AMF will also ban all electronic marketing involving FX and Binaries. As anticipated, the restrictions have no impact on the current client base.
Overall, IG does not believe these restrictions will have a material negative impact on its business in France in the short term and could even enhance the company’s future competitive position in the country.
IG spokesperson shared that the company believes that the AMF’s approach will provide substantial protection for consumers and improve standards in the sector. IG supports robust and proportionate regulatory oversight of the CFD sector in all the markets in which it operates.