Germany's Federal Financial Supervisory Authority has issued a product intervention measure for turbo certificates, limiting their marketing, distribution and sale to retail investors domiciled in Germany and requiring firms to make the products’ risks more transparent. The restrictions will apply from 16 June 2026. Issuers, providers and intermediaries must display a standardised risk warning, while intermediaries must test investors’ “turbo basic knowledge” of how the products work before purchase and repeat the check at least every six months. The measure also bans monetary and non-monetary benefits linked to acquiring turbo certificates, such as reduced order fees or new-customer bonuses. BaFin pointed to a market study in which 74.2% of retail investors incurred losses over five years, averaging EUR 6,358 each and totalling more than EUR 3.4bn, alongside concerns about product complexity and marketing and distribution practices. After a public consultation on the draft measure launched on 21 May 2025, BaFin received 26 submissions by 3 July 2025 and extended the implementation period from three to eight months to reflect the technical and administrative effort needed to integrate the risk warning and knowledge check into existing trading systems.
BaFin 2025-10-15
Germany's Federal Financial Supervisory Authority restricts retail distribution of turbo certificates and mandates risk warning and knowledge checks from 16 June 2026
Germany's Federal Financial Supervisory Authority (BaFin) has imposed a product intervention measure on turbo certificates, restricting their marketing, distribution, and sale to retail investors in Germany and mandating enhanced risk transparency. Issuers and intermediaries must display a standardised risk warning and test investors' understanding of the products biannually. Effective from 16 June 2026, the measure follows a market study revealing significant investor losses and concerns over product complexity and marketing practices.