Home / Regulatory Developments / Circular C248 (Requirements of the Spanish Securities and Exchange Commission (“the CNMV”) on the provision of warnings on complex Financial Instruments to Retail Clients resided in Spain)

Circular C248 (Requirements of the Spanish Securities and Exchange Commission (“the CNMV”) on the provision of warnings on complex Financial Instruments to Retail Clients resided in Spain)

Further to Circular C210 dated 17.05.17, CySEC informs Cypriot Investment Firms (“CIFs”) regarding the abovementioned subject with particular emphasis to the below:

  1. CIFs must include relevant warnings as advised in Circulars C210 and C248, on the homepage of their website and not relegate any warning to other part of their website with less direct access.
  2. The language in which the warnings are written, for those websites that adopt Spanish to advertise the products and services offered, must be in the same language, including any warnings corresponding to secondary documents.
  3. CIFs that wish to include a warning in their general website and not in a specific one for each user and transaction (i.e. a warning on the “cost of closing the position”), this may be drafted in terms of the mechanism or manner for determining that cost (instead of the exact amount in euros). This will possibly reduce the delay in executing the order in question.

CySEC’s expects that: CIFs that intend to provide complex Financial Instruments to Retail Clients resided in Spain, are urged to fully comply with the provisions laid down in the Circular.

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