IG Group allays fears over new French regulations
IG Group has responded to the introduction of new advertising regulations by the French Autorité des marchés financiers (AMF) regulatory body, saying it does not believe such measures will have a negative impact on business.
The changes in regulation come after the country passed the Sapin 2 law at the end of last year, with firms that offer contracts for difference (CFD) products to retail clients in France to face new restrictions.
In a statement, IG Group said the measures do not impact its accounts in France, as the firm’s accounts “provide a limited loss-by-position guarantee as required, and therefore also a guarantee of no negative balance”.
IG Group also responded to a new measure that will ban all electronic marketing involving foreign exchange and binaries, saying the restrictions “have no impact on the current client base”.
The company added: “Overall, the company does not believe these restrictions will have a material negative impact on its business in France in the short term and could ultimately enhance the company’s future competitive position in the country.
“IG Group believes the AMF’s approach will provide substantial protection for consumers and greatly improve standards in the sector.
“IG Group supports robust and proportionate regulatory oversight of the CFD sector in all the markets in which it operates.
“The company has operated and will continue to operate to the highest standards in the industry.”
The move comes after several countries in Europe also adopted new laws in regards to CFD products.
Related article: Germany’s BaFin proposes new regulations for CFDs