Head of France’s securities regulator AMF, Gérard Rameix, has addressed the nation’s president François Hollande, voicing his concerns regarding the risks associated with trading online, and Forex trading in particular.
The letter mentions that in the face of the regulatory efforts to check the investors’ exposure to such high-risk products, the amount of losses from online trading topped EUR 4 billion over the past 6 years. As a result, the AMF pushes for the adoption of the Sapin 2 law (currently a bill), which is targeted against corruption and financial fraud. Sapin 2 aims to ban advertising of investment products associated with high risks of losses, like Forex.
Last year, France’s online advertising of investment products was dominated by Forex and binary options ads, which accounted for 35% of the total online investment ads.
AMF published its annual report for 2015 today, showing that the number of complaints received against binary options and Forex brokers reached 1,617 in 2015, up from 1,293 in 2014.
The information service of the regulator responded to 14,424 requests for information, with the vast majority of these concerning FX and binary options brokers. Some investors complained about not being able to get their funds back, whereas others wanted to know whether a given company is properly regulated in France.
Number of complaints received by AMF regarding FX and binary options firms.
This article is for information purposes only.
Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.
There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.