Breaking: ESMA Clarifies EU Passporting and Affiliate Use for Forex and CFDs Brokers
- ESMA clarifies existing regulatory requirements to provide more information for brokers and national regulators .

The European Securities Markets Authority (ESMA) has published a new addition to its regulatory Q&A dedicated to providers of foreign Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term, CFDs and binary options brokers.
The document has been amended to include a section that clarifies the supranational regulator's stance on passporting and the cross-border provision of financial services to retail clients.
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The document is also addressing the use of Affiliates Affiliates Affiliates serve as an essential component of a broker’s client acquisition tactics and marketing. One of the most important functions of affiliate marketers is the sending of leads to the broker, which are directly opening an account or visiting the broker’s website. There are several ways in which brokers are compensating affiliates based on the number and type of clients they refer to the company and whether or not or how much they end up depositing.Understanding CPA or Cost Per Acquisition T Affiliates serve as an essential component of a broker’s client acquisition tactics and marketing. One of the most important functions of affiliate marketers is the sending of leads to the broker, which are directly opening an account or visiting the broker’s website. There are several ways in which brokers are compensating affiliates based on the number and type of clients they refer to the company and whether or not or how much they end up depositing.Understanding CPA or Cost Per Acquisition T Read this Term by brokers and provides guidance to national supervisory authorities on how to oversee such entities.
The detailed clarifications can be found in the embedded document at the bottom of this article (pages 84 to 96). Key takeaways include that companies cannot provide MiFID services via their representative offices in other countries. Brokers are only allowed to conduct market research and promote the brand of the firm.
As to affiliates, the document is highlighting that they need to be adhering to regulatory requirements at all times. ESMA states that on numerous occasions affiliates have been providing investment advice and/or money management services. Brokers are encouraged to closely supervise the activities of any third parties that are connected to their operations.
The national regulators of the EU member states are strongly encouraged to exercise supervision over the activity of the brokers outside of the home country where they are regulated.
ESMA CFDs Q&A March 2017 by TorVik on Scribd
The European Securities Markets Authority (ESMA) has published a new addition to its regulatory Q&A dedicated to providers of foreign Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term, CFDs and binary options brokers.
The document has been amended to include a section that clarifies the supranational regulator's stance on passporting and the cross-border provision of financial services to retail clients.
[gptAdvertisement]
The document is also addressing the use of Affiliates Affiliates Affiliates serve as an essential component of a broker’s client acquisition tactics and marketing. One of the most important functions of affiliate marketers is the sending of leads to the broker, which are directly opening an account or visiting the broker’s website. There are several ways in which brokers are compensating affiliates based on the number and type of clients they refer to the company and whether or not or how much they end up depositing.Understanding CPA or Cost Per Acquisition T Affiliates serve as an essential component of a broker’s client acquisition tactics and marketing. One of the most important functions of affiliate marketers is the sending of leads to the broker, which are directly opening an account or visiting the broker’s website. There are several ways in which brokers are compensating affiliates based on the number and type of clients they refer to the company and whether or not or how much they end up depositing.Understanding CPA or Cost Per Acquisition T Read this Term by brokers and provides guidance to national supervisory authorities on how to oversee such entities.
The detailed clarifications can be found in the embedded document at the bottom of this article (pages 84 to 96). Key takeaways include that companies cannot provide MiFID services via their representative offices in other countries. Brokers are only allowed to conduct market research and promote the brand of the firm.
As to affiliates, the document is highlighting that they need to be adhering to regulatory requirements at all times. ESMA states that on numerous occasions affiliates have been providing investment advice and/or money management services. Brokers are encouraged to closely supervise the activities of any third parties that are connected to their operations.
The national regulators of the EU member states are strongly encouraged to exercise supervision over the activity of the brokers outside of the home country where they are regulated.
ESMA CFDs Q&A March 2017 by TorVik on Scribd