IG Group Holdings plc Response to FCA findings of review of CFD market (4951B)
10 January 2018 - 10:31PM
UK Regulatory
TIDMIGG
RNS Number : 4951B
IG Group Holdings plc
10 January 2018
10(th) January 2018
LEI No: 2138003A5Q1M7ANOUD76
IG GROUP HOLDINGS PLC
Response to FCA findings of review of the CFD market
IG Group Holdings plc ("IG", "the Company"), a global leader in
online trading, notes that the Financial Conduct Authority (FCA)
have today issued a letter to all providers and distributors of
contracts for difference (CFD) products.
IG welcomes the FCA's review on the provision and distribution
of CFD products to clients on an advisory or discretionary basis.
IG does not offer advisory or discretionary services for CFD
products and has terminated its very small number of relationships
with distributors who offer our CFD product on a discretionary or
advisory basis to retail clients within the UK and EU. IG believes
that it complies with the applicable rules and FCA guidance and
that this review has no new financial implications for IG's
business.
The Company is always seeking to improve and we have taken steps
to address the observations made by the FCA in their individual
letter to IG on this aspect of the industry in October 2017. We
believe that stricter supervision of those firms who do not comply
will lead to improved client outcomes in the industry.
In line with RPPD and MiFID II product governance obligations,
IG has carefully defined its target market. This is shared with the
few partners with whom IG works, and who distribute its products in
accordance with IG's own high standards.
The Company has delivered a sustainable business by placing good
client outcomes at the heart of everything it does. Good conduct,
from the way products are designed, to how they are marketed, to
whom firms allow to use them, is essential in protecting
clients.
The Company's long held view is that robust supervision around
who the product is marketed to, and which applicants are accepted
as clients, remains the most significant measure to drive improved
client outcomes.
For further information, please contact:
IG Group
Liz Scorer 020 7573 0727
investors@iggroup.com
FTI Consulting
Neil Doyle / Ed Berry 020 3727 1141 / 1046
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
Article 17 of the Market Abuse Regulation ("MAR"). Upon the
publication of this announcement via Regulatory Information Service
("RIS"), this inside information is now considered to be in the
public domain.
About IG
IG empowers informed, decisive, adventurous people to access
opportunities in over 15,000 financial markets. With a strong focus
on innovation and technology, the company puts client needs at the
heart of everything it does.
IG's vision is to be a global leader in retail trading and
investments. Established in 1974 as the world's first financial
spread betting firm, it continued leading the way by launching the
world's first online and iPhone trading services.
IG is now an award-winning, multi-platform trading company, the
world's No.1 provider of CFDs* and a global leader in forex. It
provides leveraged services with the option of limited-risk
guarantees, and offers an execution-only share dealing service in
the UK, Australia, Germany, France, Ireland, Austria and the
Netherlands. IG has recently launched a range of affordable, fully
managed investment portfolios, to provide a comprehensive offering
to investors and active traders.
It is a member of the FTSE 250, with offices across Europe,
including a Swiss bank, Africa, Asia-Pacific, the Middle East and
the US, where it offers on-exchange limited risk derivatives via
the Nadex brand.
*Based on revenue excluding FX (from published financial
statements, October 2016)
This information is provided by RNS
The company news service from the London Stock Exchange
END
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