Update on French regulatory position on CFDs

RNS Number : 6020T

IG Group Holdings plc

09 January 2017

 

9 January 2017

IG GROUP HOLDINGS PLC
Update on French regulatory position on CFDs

IG Group ("IG", "the Company"), a global leader in online trading, today provides an update on the impact of new requirements from the AMF, a supervisor of the Company's activities, on the advertising of its products in France.

Following the passing of the Sapin 2 law at the end of 2016, the general rulebook of the AMF has now been adopted.  The AMF has confirmed certain restrictions on electronic marketing of CFDs to retail clients in France.  The key marketing restrictions do not impact the accounts that IG now offers to new clients in France, because IG's accounts provide a limited loss-by-position guarantee as required, and therefore also a guarantee of no negative balance.  The AMF will also ban all electronic marketing involving FX and Binaries.  As anticipated, the restrictions have no impact on the current client base.  

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 believes the AMF's approach will provide substantial protection for consumers and greatly improve standards in the sector.  IG 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.

For further information, please contact:

IG Group

Kieran McKinney
Head of Investor Relations and Corporate Affairs            020 7573 0026                    [e-mail]

FTI Consulting

Neil Doyle / Ed Berry                                                                     020 3727 1141 / 1046

IG is a global leader in online trading, providing fast and flexible access to over 10,000 financial markets - including shares, indices, forex, commodities and binaries.

Established in 1974 as the world's first financial spread betting firm, IG's aim is to become the default choice for active traders globally.  It is an award-winning multi-platform trading company, the world's No.1 provider of CFDs* and a global leader in forex, and it now offers an execution-only stockbroking service in the UK, Australia, Ireland, France, Germany, Austria and the Netherlands.

It is a member of the FTSE 250, with offices across Europe, Africa, Asia-Pacific, the Middle East and the US, where it offers limited risk derivatives contracts via the Nadex brand.

* based on revenue excluding FX (from published financial statements, October 2016)

 

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