IG mulling over response to German regulator's concerns

8th Dec 2016 16:55

(ShareCast News) - Online trading and spreadbetting provider IG Group issued a statement on Thursday afternoon. noting an intended measure announced earlier in the day by BaFin, the federal financial regulator in Germany.The BaFin announcement was over the the marketing, distribution and sale of CFDs to retail clients.It proposed that the marketing, distribution and sale of CFDs to retail clients in Germany could only be undertaken if the client is not at risk of losing more than the value of their account."The company considers the BaFin proposal to be consistent with IG's recent introduction of limited risk accounts, which guarantee that a client cannot incur losses in excess of the amount deposited in their account," IG's statement read.It said it firmly believes in "robust and proportionate" regulatory oversight of the CFD sector in all the markets in which it operates."The company has operated and will continue to operate to the highest standards in the industry."IG said it will carefully consider the full implications of the announcement and will be seeking to meet with BaFin before responding to the consultation, mindful of the 20 January deadline provided.