It is official, the AMF electronic Advertising Ban on Forex, Binary Options and CFDs has been included in the Sapin II. Now, with the AMF Forex Advertising Ban confirmed, how will the new AMF regulation mechanism operate?
11 January, AtoZForex – France’s Autorité des Marchés Financiers (AMF) has released news that its proposed measures to ban electronic advertising for certain investment products were included in the "Sapin II" law (1). The AMF suggested banning advertising of Forex and Binary Options products on the 1st of August 2016. After the announcement, the AMF started a public consultation enabling stakeholders to react to the proposed amendment.
AMF Forex Advertising Ban confirmed
According to the AMF's report, offers to bet on Forex or trade using binary options have been heavily impacting retail traders. The offers usually tend to display unrealistic returns and are promoted through advertisements on high-traffic websites. In addition, firms’ offering such deals are in many cases unregulated and involved in fraudulent activities. As a result, investors lose significant sums of money.
Therefore, the French watchdog has decided to restrain retail traders' access to these highly speculative instruments. It proposed a legislative measure to prohibit advertising of these products. Now, the Sapin II law includes the rule for regulating advertising of highly speculative and risky contracts.