FCA Makes Binary Options Ban for Retail Investors Permanent

After almost nine months of temporary measures in place, the (FCA) has confirmed the permanent ban on the sale of binary options to retail consumers this Friday.
The announcement today may not come as a huge surprise to market participants and follows from consultation feedback given to the British regulator. Therefore, from the 2nd of April 2019, all firms acting in or from the UK are prohibited from selling, marketing or distributing binary options to retail consumers.
FCA Includes Securitised Binary Options in Ban
Overall, the FCA’s rules for binary options are basically the same as the European Securities and Markets Authority’s (ESMA) , which were implemented on the 2nd of July, 2018.
The only difference, according to the British watchdog, is that its restrictions also apply to so-called ‘securitised binary options’ that were excluded from ESMA’s prohibition. The FCA has decided to also ban this product as it believes it poses the same risks for investors.
Because ESMA’s measures were EU-wide, UK firms already had to adhere to these prohibitions. This means, today’s announcement will not mean any immediate change for brokers operating within Britain, but it does remove the lingering uncertainty as to whether trading of binary options will be permitted again for retail clients.