The UK’s financial regulator has warned contracts for difference (CFD) providers to improve how they deliver fair value after a review found several firms falling short of Consumer Duty standards.
The Financial Conduct Authority (FCA) on Thursday said some CFD providers may not be meeting the requirements of the Consumer Duty, a regulation introduced in July 2023 to raise consumer protection standards across financial services. The FCA said it will follow up directly with firms included in the review and may take further action While the review found examples of better practice, including simplified fee structures and steps to restrict unsuitable clients from trading CFDs, the F