Response to FCA Consultation Paper
6 December 2016
CMC Markets plc ("CMC") notes this morning's announcement by the FCA of a consultation on measures designed to enhance consumer protection in the CFD market. CMC shares a common desire to see a uniform application of the highest standards of conduct across the industry.
In its consultation paper, numbered CP16/40, the FCA has identified the risks to inexperienced retail investors posed by firms with a business model predicated on high churn of clients with a high loss rate. CMC has consistently focused on higher-value experienced premium clients who understand the markets and products they are trading. Furthermore, an integral part of CMC's "client first" proposition over the last five years is ongoing client education about markets, products and associated risks. CMC's business model and ongoing strategy is focused on generating revenue from client trading costs and therefore believes in establishing long-term client relationships.
CMC recognises that in its consultation paper the FCA is endeavouring to ensure that any regulation is delivered in a balanced fashion and looks forward to working closely with the FCA over the coming months.
Geoffrey Pelham-Lane/Ed Gascoigne-Pees/Jennifer Renwick Tel: 020 3757 4994