Watchdog slaps sloppy conduct

SPREADBETTING firms have been attacked by the City watchdog for putting retail customers at “serious risk of harm”.

The Financial Conduct Authority said its review of Contracts for Difference – high risk, complex financial products which allow investors to trade shares and markets without owning the underlying asset – uncovered areas of serious concern. It found that 76 per cent of those who bought CFD products over a 12-month period lost money.

Concerns included flawed due diligence and ineffective oversight to challenge poor conduct.

The FCA said: “There is a high risk that firms are not meeting our rules and expectations,” and threatened “appropriate action”.