The German regulator has issued a general order with several requirements aimed at enhancing investor protection due to the high risk and complexity associated with turbo certificates.
The German Federal Financial Supervisory Authority (BaFin) has released a product intervention circular restricting the marketing, distribution and sale of turbo certificates to retail investors in Germany. The circular specifies the conditions under which turbo certificates can be sold to retail investors going forward, including mandatory risk warnings and the obligation of intermediaries to ensure that marketing communications disclose these warnings. Under the new rules, product providers