On 27 March, ESMA published a statement detailing a number of measures in relation to CFDs, spread bets and binary options. In particular, ESMA will be restricting leverage available to retail clients to between 30:1 and 2:1 in the coming months, according to the volatility of the underlying asset traded.
These restrictions will not apply to professional clients. While lower margin rates will be available to professional clients, it is important to note the risks associated with this.
London Capital Group Limited (hereinafter as “LCG UK”) and London Capital Group (Cyprus) Limited (hereinafter as “LCG CY”) will hold and maintain an amount equal to your account value for each account you hold with us in a segregated client money bank account.
As an individual, you are eligible for FSCS protection on up to £50,000 that you hold with us if you are registered under LCG UK.
Your investment is covered by the Investors Compensation Fund which covers eligible investments up to €20,000 per person, per firm, if you are registered under LCG CY.
As an individual (consumer) and client of LCG UK, you are able to use the FOS should you not be satisfied with the outcome of a complaint to us.
If you do not feel your complaint has been resolved satisfactorily, you are able to refer your complaint to the The Financial Ombudsman of the Republic of Cyprus, if you are registered under LCG CY
You retain the right to request a different categorisation at any time, for example if you wish to be afforded a higher level of regulatory protection.
LCG UK and LCG CY will not be required to provide you with the current risk warnings we must provide to retail clients or any standardized risk warning that is introduced in future in relation to transactions in complex financial products.
Certain FCA and CySEC (or equivalent) rules relating to the form and content of information provided by LCG UK and LCG CY do not apply, including those relating to communications and financial promotions.
Retail clients will benefit from negative balance protection being introduced in the near future, from FCA. This requirement is already available for all retail clients registered under LCG CY. However, this functionality will not be available to professional clients.
LCG UK and LCG CY will soon be required to restrict leverage to between 30:1 and 5:1 on the products we offer to retail clients. Higher leverage can work against investors and amplify losses.