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ESMA issues positive opinion on the product intervention measures implemented by MFSA

ESMA has issued an opinion on the national product intervention measures implemented by the Malta Financial Services Authority (“MFSA”), stating that the national measures are justified and proportionate. The said measures consist of a permanent restriction on the marketing, distribution or sale of contracts of differences (CFDs) to retail clients in or from Malta. This follows a consultation document published by the MFSA on the same subject matter on the 13th May 2019 (www.dfadvocates.com/2019/05/15/mfsa-issues-consultation-on-cfds-and-binary-options/).

ESMA has also called upon national competent authorities of other Member States to take product intervention measures that are at least as stringent as ESMA’s measures. As most national competent authorities have taken permanent national product intervention measures relating to CFDs, ESMA has not renewed its temporary restriction. As a result, the measures applicable in terms of ESMA Decision (EU) 2019/679 have automatically expired on the 31st July 2019.

For further information on the subject matter, please contact our financial services team on jean.farrugia@dfadvocates.com or alejandro.borg@dfadvocates.com.

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