ForexMinute.com – With an aim to eliminate poor sales practices from leverage investment products, the French Market Regulator ARPP had lately issued a few common general rules, mandatory to be followed by companies while broadcasting their advertising campaigns.
The regulatory body has now hinted to implement these rules on or before April 23rd this year. With being effective, the new guidelines will make it mandatory for companies to specify its nature of product, services, presentation rate, promotional offers, legibility, audibility and intelligibility of the entries, transparency & comprehensibility, and past performances. The companies will also have to install proper standards to protect minors.
The specified rules will be focused on two key annexes. They are: Advertising for Leverage Financial Products to gain exposure of Forex, stock indices, the prices of raw materials, as well as binary options; and the Advertising of so-called atypical investments.
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While the latest move by ARPP to cut down poor sales practices from forex industry is well-intentioned, practically it is uncreative for advertisers. Experts believe that putting disclaimers on advertisings will not only lessen the creative quotient of the ad, but also distracts traders from understanding the actuality of the product.
Our very own financial expert Mr. Jonathan Millet believes investors need to be smart enough to understand the risks associated with their investments. “Putting more disclaimers and warnings won’t be of much help.†say he, “It will take unnecessary ad-space and will kill the very essence of the creativity. It would be far better that the ARPP recommends companies to put these warnings during the signup process.â€
Earlier, Russian Government also introduced a forex regulation bill that would put certain restrictions on forex brokerage firms’ advertising campaigns.
To contact the reporter of the story: Yashu Gola at yashu@forexminute.com
