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#1 12-02-2014 13:16:06

Admin & Trader
From: Paris - France
Registered: 21-12-2009
Posts: 3069

The ESMA asks brokers to improve the way they sell financial products

The ESMA asks brokers to improve the way they sell complex financial products

Article by Leaprate

ESMA particularly notes selling practices of complex financial products to retail clients.

ESMA (European Securities and Markets Authority) is continuing to throw its weight around, and establish itself as a to-be-taken-seriously pan-European rule setter in financial markets.

What exactly is ESMA's role? While not technically a forex regulator -- each EU country has its own financial regulator (e.g. FCA in the UK, BaFIN in Germany, CySEC in Cyprus...) -- ESMA's self stated mission is to build a single rule book for EU financial markets and ensure its consistent application across the EU.

With ESMA's major trade-reporting EMIR regulations about to take effect next week, it is not resting on its laurels and is letting individual country regulators (and regulated brokers) know that it is looking to raise standards in other areas too -- with the most recent one being a focus on sales practices.

ESMA's latest missive states that firms' compliance with MiFID selling practices 'may have fallen short of expected standards', particularly when it comes to selling complex products to retail investors. ESMA wants to raise awareness about the risks arising from investing in types of complex products which were previously unavailable to retail investors.

"Anything worth having is worth going for - all the way." - J.R. Ewing



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