The CNMV limits the advertising of CFDs and also restricts other high-risk finan

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The National Securities Market Commission (CNMV) has given a twist to the marketing of Contracts for Differences (CFD), given the evidence that the restrictions implemented in 2018 are not enough to prevent these high-risk financial products from being sold. continue placing retail clients. The organization chaired by Rodrigo Buenaventura has verified that “between 70% and 90% of clients who operate with CFDs in Spain suffer losses.” For this reason, the market regulator has just established a ban on CFD advertising for retail clients or the general public. This prohibition extends to event and organizational sponsorships and brand advertising, including the use of persons of public importance by entities trading CFDs. Both types of communication will only be allowed when the activity is very small compared to the overall activity of the entity.


In the resolution published this Wednesday, the CNMV has also limited the remuneration policies and sales techniques of these products and intervenes in the marketing, sale and distribution of other leveraged Job Function Email Database instruments to retailers. No seminars or 'webinars' “These measures aim to reinforce the protection of investors against certain commercial and advertising practices in the offer of CFDs that had prevented the regulations and intervention measures in force to date from being effective,” the CNMV explained in a statement. Brokers that negotiate with CFDs will be prohibited from certain remuneration practices of the commercial network, such as linking remuneration to the number of clients attracted, to the income they generate for the entity or to the losses they obtain. Also prohibited is the use of call centers , webinars and demonstration accounts that encourage the distribution of these products to retailers.



Complex and high risk” products and therefore generally “not suitable” for retail investors. For this reason, both the European securities market supervisor (ESMA), in 2018, and the CNMV, in 2019, adopted various intervention measures that established conditions for the marketing, distribution or sale to said investors. The approved measures are due to the fact that the CNMV considers that previous efforts have not been effective in protecting investors. With respect to the rest of the leveraged products, the maximum leverage that investors can be exposed to has been limited and requires margin closure protection. This means that clients using leverage will have their positions closed when they drop to 50% of the initial margin, limiting their losses.