The Financial Conduct Authority has reported that 21 contracts for differences firms have closed since 2025 following its crackdown on the misuse of UK authorisation, while three more are cancelling their permissions. The regulator targeted firms that conduct little UK business but use their authorised status to lend credibility to linked overseas companies, potentially misleading consumers about whom they are dealing with and whether UK regulatory protections apply. The FCA’s actions have included restrictions on firms’ trading activities, requirements for independent business reviews and enforcement investigations in the two most serious cases. It also warned that CFDs are complex, highly leveraged products that can generate substantial losses quickly, and urged consumers seeking UK protections to verify that their counterparty is the UK-authorised firm rather than a similarly named overseas entity.
2026-09-25Financial Conduct Authority
UK Financial Conduct Authority crackdown sees 21 CFD firms close, three more cancel permissions over misuse of authorisation
Twenty-one CFD firms have closed since 2025 following a Financial Conduct Authority crackdown on firms using UK authorisation to lend credibility to linked overseas businesses, with three more cancelling their permissions. Measures have included trading restrictions, independent reviews and two enforcement investigations.