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First in France, now the Dutch regulators ban some financial advertising

By Stefan Finsinger
from Quality Financial Media
26 February 2017
The Netherlands is officially becoming the next EU member state to make good on its promise for stricter regulation of retail financial products. The Dutch AFM (Financial Markets Authority) is preparing to limit the advertisement of certain financial products that the country’s government deem too risky. Today the Dutch regulator published a communique which effectively starts a period of consultation with the industry and clients of the financial services.

The scope of the ban includes a number of financial instruments that are geared towards the retail investor. In contrast with the French regulator, the AMF, which has only targeted retail brokers, the Dutch government officials have included products from commercial banks into the list.

High-leverage products will be limited across the board with binary options, forex and CFDs with over 1:10 leverage being forbidden. The country’s regulator is also enforcing a ban on warrants, cocos (Contingent Convertible bonds), futures and some turbocharged products with leverage higher than 1:10, which have been on the offer by commercial banks.

Read more at http://www.financemagnates.com/forex/regulation/breaking-dutch-regulator-prepares-binary-fx-cfds-advertisement-ban/