The Romanian Financial Supervisory Authority issued an investor warning on investment firms advertising zero-commission investment services, urging investors to review offers and all relevant documentation carefully, including annexes and applicable terms and conditions, to confirm that charges and fees align with what is presented in advertising and in the contractual package. The alert highlights a marketing pattern where clients may be encouraged to open accounts on a zero-commission basis using lower-risk instruments (such as shares and ETFs) as the initial proposition, before being redirected to complex, high-risk products such as contracts for difference (CFDs), which can carry elevated risks of loss. The authority also reminded investors that Law No. 126/2018 sets prohibitions and restrictions on the marketing, distribution and sale to retail investors of derivatives such as binary options and CFDs, described as complex instruments with a high risk of rapid loss.
Romanian Financial Supervisory Authority 2025-03-19
Romanian Financial Supervisory Authority warns investors to scrutinise zero-commission offers and potential marketing toward CFDs
The Romanian Financial Supervisory Authority warned about investment firms promoting zero-commission services, advising investors to scrutinize offers for fee transparency. The alert highlights a trend of attracting clients with low-risk instruments before directing them to high-risk products like CFDs. The authority reminded investors of Law No. 126/2018, which restricts marketing and sale of complex derivatives like binary options and CFDs to retail investors due to high risk.