The Central Bank is taking measures to protect investors who are involved with ‘Contracts for Difference (CFDs).
The Bank has published a new consultation paper that discusses its concerns about the use of CFDs and outlines current measures under consideration that would protect the interests of retail clients.
CFDs are complex, leveraged, derivative instruments which enable investors to speculate on the short-term price movements of an underlying asset.
Options under consideration include the prohibition of the sale or distribution of CFDs to retail clients in and from Ireland and the implementation of enhanced investor protection measures.
“CFDs are complex products which are widely advertised to the retail mass market in an online setting,” , Michael Hodson, Director of Asset Management Supervision at the Central Bank.
“It is timely for the Central Bank to take further and decisive action in relation to CFDs given the evidence that the probability of loss for consumers is very high,” Mr Hodson added.
Article Source: http://tinyurl.com/kbwqb42
