1.1 The FSRA has formalised the conditions that Authorised Persons dealing in over-thecounter leveraged products (“OTC Leveraged Products”) in relation to Retail Clients are subject to, in order to provide transparency and clarity around those requirements. These conditions and a small number of additional ones have been translated into Rules via chapter 23 of the Conduct of Business Rulebook (“COBS 23”) and associated guidance therein. In addition, we are issuing this supplementary guidance to inform Authorised Persons and potential applicants of the further criteria that we expect those firms to meet in order to be allowed to offer these products to Retail Clients.
1.2 Unless otherwise defined or the context otherwise requires, the terms contained in this Guidance have the same meanings as defined in the Financial Services Markets Regulations 2015 (“FSMR”) or the Glossary Rulebook (“GLO”), or as they appear in proposed COBS 23.2.
2.1 The FSRA is conscious that losses for most Retail Clients exposed to ...