AFM: 'Providers of Contracts for Difference unnecessarily expose investors to risks'

The Netherlands Authority for the Financial Markets initiated a phased investigation into CfDs in the autumn of 2013. It is evident from the investigation that providers of CfDs enable their clients to invest in these high-risk products too easily. The marketing of these providers focuses on an insufficiently targeted group of investors for whom CfDs will generally not be a suitable product and the provision of information concerning the operation and risks of the product is often insufficient. The AFM now urges providers to implement improvements in these areas as soon as possible.