Germany's federal financial authority BaFin has brought into force new controls for the marketing, distribution and sale of contracts for difference (CFDs) in order to address a perceived lack of consumer protection.

The regulator has introduced a General Administrative Act, first published in December 2016, which bans the sale of CFDs that have an additional payment obligation for retail clients. This requires CFD providers to offer negative balance protection to prevent investors from losing more than their account balance.

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