FRANCE: Consultation proposes advertising ban on forex, binary options and certain CFDs

Tuesday August 2 2016

The Financial Market Authority in France (AMF) has issued a consultation on amendments to the General Regulations of the AMF, proposing advertising bans on Forex, binary options and certain CFD’s.

Article 28 of the draft law “Sapin 2” will establish a mechanism for banning any form of communication in advertisements directly or indirectly addressed by investment service providers, by electronic means (email campaigns, banner ads online, radio, television, etc.), for individuals and for financial instruments particularly difficult to understand and potentially very risky. It will enter into force after the Parliament vote and the promulgation of the law. It refers to the General Regulation of the Financial Markets Authority (AMF) to specify the categories of contracts covered by this prohibition device.

Consequently, the AMF proposes to add a title in Book I of its General Regulations entitled “Measurement of coaching Advertisements shall on financial contracts.” It would read as follows:

prohibited are, pursuant to Article L. 533-12-8 of the Monetary and Financial Code, the Advertisements shall address the following financial contracts:

• binary options contracts; or
• contracts that emphasize direct or indirect investment in the “Forex”, the foreign exchange market or the currency market; or
• financial contracts for difference (CFD) with an upper leverage ratio of 5; and
• financial contracts with economically equivalent effect to those listed above.

Responses to the public consultation should be sent to the AMF by September 30, 2016, at the following address: directiondelacommunication@amf-france.org

Click the link at the top of the page for more information.