Home / Regulatory Developments / Circular C210 (“the Circular”) dated 17.05.17 regarding New Requirements of the Spanish Securities and Exchange Commission (“CNMV”) regarding the provision of warnings on complex financial instruments to retail clients resided in Spain

Circular C210 (“the Circular”) dated 17.05.17 regarding New Requirements of the Spanish Securities and Exchange Commission (“CNMV”) regarding the provision of warnings on complex financial instruments to retail clients resided in Spain

Through the Circular, CySEC informs the Regulated Entities that CIFs that provide investment services relating to Financial Contracts for Difference (CFDs) and rolling-spot foreign exchange (Forex) with a leverage greater than 10:1, or Binary Options to Retail Clients, through branch or cross border, in the territory of the Spanish Regulator, the Comisión Nacional del Mercado de Valores (CNMV).

  1. Regulator’s legislation:   Annex 1 issued by the CNMV regarding warnings, handwritten sentence and information;
  2. Enforcement date:   17.06.17 (within 1 month from issuance of Circular C210 on 17.05.17)
  3. Restriction applicable:   Pursuant to Annex 1 issued by the CNMV regarding warnings, handwritten sentence and information, CIFs should appropriately warn Retail Clients residing in Spain about the risk and complexity of the abovementioned products.

CySEC’s expects that: In order to ensure that all Spanish investors have the same level of protection, and also ensure for a level playing field for all participants in the Spanish market, Investment Firms shall ensure that, inter alia, clients are provided with a:

  1. “General Warning” as provided in the said Annex;
  2. an additional warning paragraph shall be added to the “General Warning”, in case of all 3 types of products;
  3. an additional warning paragraph shall be added to the “General Warning”, in case of CFDs and Forex;

and

  1. CIFs shall require Retail Clients’ signatures on the text where the warning appears,
  2. A handwritten statement from Retail Clients i.e. “…product is complex and not convenient for me…”
Top