CYSEC Circular with respect to the changes in the Belgian Regulation
We bring to your attention CYSEC’s Circular with respect to the changes in the Belgian Regulation for the distribution of Over the Counter Derivatives.
According to the new Belgian Regulation, which came into immediate effect as of the 18th of August 2016, certain derivatives such as binary options, CFDs with leverage etc. may not be distributed to retail clients and certain distribution practices will also be prohibited to retail clients who are residing in Belgium.
In view of this, all Investment Firms should ensure that they will fully comply with the above regulation by taking the necessary measures, including inter alia, their onboarding procedures.
CYSEC Circular can be found here.
We note with interest that the Belgian Authorities have granted all Companies a 2 month grace period to unwind existing client’s positions.