New Zealand's FMA seeks feedback on potential leverage limits and investor suitability changes for Derivative Issuer (DI) licenses.
New Zealand's Financial Markets Authority (FMA) is seeking feedback on potential changes to the standard conditions for Derivative Issuer (DI) licenses, focusing on leverage limits and investor suitability. The proposed changes stem from the FMA's 2020 Derivatives Issuer Sector Risk Assessment and monitoring of the sector. Currently, no limit exists on the leverage a licensed DI can offer to retail investors, with some offering up to 500:1, amplifying financial risk from price volatility.
June 10, 2024
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