UK Financial Conduct Authority Dear CEO Letter - Client Take-On Review In Firms Offering Contract For Difference (CFD) Products

The Financial Conduct Authority (FCA) recently reviewed the procedures for taking on new clients in a sample of ten firms that offer CFD products. We reviewed:

• the firms’ approaches to assessing the appropriateness of CFD trading for prospective clients
• initial disclosures to clients
• anti-money laundering (AML) controls
• client categorisation

We have identified several areas of concern which we wish to highlight to firms across the industry. In this letter to CEO’s we explain the issues we have identified and ask firms to consider whether their firm complies with FCA requirements for sales of CFD products.

The letter can be found here