IOSCO Issues Policy Measures on OTC Leveraged Products
IOSCO issued a final report providing measures for securities regulators to consider when addressing the risks arising from the marketing and sale of OTC leveraged products to retail investors. The report contains three complementary toolkits that cover the marketing and sale of rolling-spot forex contracts, contracts for differences (CFDs) and binary options. IOSCO also issued a public statement on the risks of binary options and the response of regulators for mitigating the risks and harm to retail investors transacting in these products.
The report on retail OTC leveraged products contains measures aimed at increasing the protection of retail investors who are offered OTC leveraged products, often on a cross-border basis. The toolkits set out guidance for regulators on:
- Policy measures that can help to address the risks arising from the marketing and sale of OTC leveraged products by intermediaries
- Educating investors about the risks of OTC leveraged products and the firms offering them
- Enforcement approaches and practices to mitigate the risks posed by unlicensed firms offering the products
The measures in the three toolkits draw largely on IOSCO members’ experiences and practices. The toolkits described in this report do not mandate regulatory action. The initiatives are intended to serve as useful guidance to IOSCO members as they consider their approaches to address the risks arising from the marketing and sale of OTC leveraged products to retail investors. IOSCO members are encouraged to consider adopting one or several of these measures, in accordance with their legal and regulatory framework and the specific risks they have identified, to help ensure an appropriately high level of protection for retail investors transacting in the relevant products. Therefore, implementation of the different measures may vary across IOSCO members.
Related Links
Keywords: International, Securities, OTC Leveraged Products, Customer Protection, IOSCO
Previous Article
OCC Proposes to Amend Guidelines on Recovery Planning StandardsRelated Articles
|
News
EU Finalizes Regulation on Prudential Backstop for Bank NPEs Under CRRRegulation (EU) 2019/630, which amends the Capital Requirements Regulation, or CRR (Regulation 575/2013), with regard to the minimum loss coverage for non-performing exposures (NPEs), has been published in the Official Journal of the European Union.
April 25, 2019
WebPage
Regulatory News
|
|
News
FASB Issues Minor Improvements to Financial Instruments StandardsFASB issued an Accounting Standards Update (ASU No. 2019-04) that clarifies and improves areas of guidance related to the recently issued standards on credit losses (Topic 326), derivatives and hedging (Topic 815), and recognition and measurement of financial instruments (Topic 825).
April 25, 2019
WebPage
Regulatory News
|
|
News
APRA Grants License to New Authorized Deposit-Taking InstitutionAPRA announced that it has granted Judo Bank Pty Ltd a license to operate as an authorized deposit-taking institution without restrictions, under the Banking Act 1959.
April 24, 2019
WebPage
Regulatory News
|
|
News
BoE Report on Evaluation of Approach to Concurrent Stress TestingBoE published a report on the evaluation, by the Independent Evaluation Office (IEO), of the effectiveness of the approach of BoE to concurrent stress testing.
April 24, 2019
WebPage
Regulatory News
|
|
News
FDIC Consults on Approach to Resolution Planning for IDIsFDIC approved an Advance Notice of Proposed Rulemaking (ANPR) and is seeking comment on ways to tailor and improve its rule requiring certain insured depository institutions (IDIs) to submit resolution plans.
April 22, 2019
WebPage
Regulatory News
|
|
News
FDIC Specifies Submission Timeline for FFIEC 031, 041, and 051 ReportsFDIC published the financial institution letters (FIL-21-2019 and FIL-22-2019) that offer guidance on submission of Call Reports FFIEC 051, FFIEC 041, and FFIEC 031 for the first quarter of 2019.
April 19, 2019
WebPage
Regulatory News
|
|
News
US Agencies Propose to Revise Call Reports FFIEC 031, 041, and 051US Agencies (FDIC, FED, and OCC) proposed to revise and extend, for three years, the Call Reports FFIEC 031, FFIEC 041, and FFIEC 051.
April 19, 2019
WebPage
Regulatory News
|
|
News
US Agencies Propose to Amend Rule on Supplementary Leverage RatioUS Agencies (FDIC, FED, and OCC) are proposing to revise the capital requirements for supplementary leverage ratio, as required by the Economic Growth, Regulatory Relief, and Consumer Protection (EGRRCP) Act.
April 18, 2019
WebPage
Regulatory News
|
|
News
EIOPA Held InsurTech Roundtable on Use of Cloud Computing by InsurersEIOPA had, on April 11, 2019, hosted its Fourth InsurTech Roundtable on the use of cloud computing by insurance undertakings.
April 17, 2019
WebPage
Regulatory News
|
|
News
EP Resolution on Proposal for Sovereign Bond Backed SecuritiesThe European Parliament (EP) published adopted text on the proposal for a regulation of the European Parliament and of the Council on sovereign bond-backed securities (SBBS).
April 16, 2019
WebPage
Regulatory News
|
