On Friday the FCA proposed making temporary curbs on the sale of complex derivative products to retail customers permanent.

EU regulators agreed in June to a temporary ban on the sale of “binary options” and imposed restrictions on the sale of CFDs, aiming to protect retail investors from heavy losses.

The FCA, in a statement, also proposed applying the restrictions to similar products such as “turbo-certificates” in the UK, widening the scope of the current EU curbs to stop variations getting round the restrictions.

The FCA is acting to tackle widespread concerns about the inherent risks of these products, and the poor conduct of the firms selling them, that has led to harm to consumers in the UK and internationally through large and unexpected trading losses,” the watchdog said.

Germany’s financial watchdog said last month that it also plans to ban private investors from buying binary options.

A permanent ban on binary options could save retail consumers up to 17 million pounds a year, and may reduce the risk of fraud by unauthorised entities claiming to offer these products, it added.

The FCA will consult separately in early 2019 on a potential ban on the sale of derivative products referencing cryptocurrencies, including CFDs, to retail consumers.

EU regulators have said their ban on selling binary options would be extended in January for three months.

The FCA will publish final rules by March 2019, however its has also said that if there is no Brexit transition period and it was unable to finalise its proposed rules by March, it would likely adopt emergency measures to replicate the bloc’s curbs so that investors are still protected.

The FCA is also seeking feedback on whether its proposed curbs on CFDs should be extended to other complex retail derivative products, including futures contracts.

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