ESMA rules are applied unequally within the EU

Article originally published by FinanceFeeds:

Chairman of France’s financial markets authority says some nations may simply do away with the restrictions on CFDs and binary options.

The first day of June was marked by the announcement by the European Securities and Markets Authority (ESMA) on the formal adoption of the new rules for offering CFDs and binary options to retail investors. Implementation issues are now high on the agenda, with France being one of the nations questioning the willingness of all EU members to put the new rules into practice.

In his latest speech before the French Senate, Robert Ophèle – Chairman of France’s financial markets authority AMF, welcomed ESMA’s efforts to restrict the offering of high-risk CFDs and to impose a ban on binary options.

He stressed that the national authorities now will get to decide on how to implement the rules – they have the right, for instance, to implement the restrictions on a permanent basis. Mr Ophèle said that he notices that certain nations are tempted to adapt the restrictions in a certain way – with regard to the CFD leverage cap or the underlying assets covered by the new rules. He said he could not exclude the possibility that some countries may simply suspend the restrictions within their territories.

This stance echoes recent critical comments made by Mr Ophele. In May this year, he greeted the efforts of ESMA to impose restrictions on the offering of risky financial products. He noted that although ESMA will impose restrictions temporarily, the national regulators may impose them on a permanent basis.

“I observe, however, that this approach is far from homogenous in Europe as you have probably noticed yourself thanks to the match Marseille v Madrid. Our Spanish friends tolerate the sponsorship of their teams by financial intermediaries that specialize in toxic products, a practice that we were able to eradicate in France and that is prohibited by Sapin 2 law”, said Robert Ophèle.

In his most recent speech before the Senate, Mr Ophele went one step further in his efforts to put an end to the offering and advertising of toxic products to French investors.

“I would like to make use of my presence here to plead in favor of an extension of the remit of the provisions of the Sapin 2 law beyond Forex and binary options to allow us to block the access to sites illegally offering investments in various goods – such as diamonds and crypto-assets”.

The AMF chairman reiterated that during the first four months of the year, the consumer information center of the regulator treated more than 4,000 enquiries, with some 700 of them concerning crypto-assets.