UK FCA good and poor practice for CFD firms

The UK Financial Conduct Authority (FCA) has published its findings from a May survey assessing firms' actions in response to its November 2025 multi-firm review of contract for difference (CFD) providers' compliance with the consumer duty price and value outcome. Most firms had made or planned changes, but many of the changes were relatively minor and did not make a material difference. The FCA expressed disappointment at the pace of progress and highlighted the following key concerns:

• Fair value assessments: firms should not treat these merely as a tick-box exercise and should focus more on consumer outcomes and potential harm.
• Communications: firms do not explain their costs prominently enough in the client journey, often including them only in terms and conditions or key information documents (KIDs). Overnight charges are not always shown as a projected annual percentage. Firms should consider if they could produce better consumer outcomes with earlier and more prominent signposting to information about pricing and overall fair value.
• Overnight funding charges: the level of these charges and the way firms apply them may not be consistent with price and value obligations under the duty. Some firms' charges seem high in the context of prevailing base rates and peer comparisons.

The FCA strongly recommends that firms review the good practice and areas of concern and consider whether they should change anything to meet their price and fair value obligations. It expects firms to be able to show that they have reviewed their charges and will follow up with them individually where it has concerns.

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