Report on Retail OTC Leveraged Products
IOSCO has developed three complementary toolkits that provide guidance on ways to mitigate harm to retail investors in the sector. These toolkits set out:
Policy measures with guidance for the regulation of the offer and sale of the relevant products by intermediaries;
Investor education materials with guidance about the relevant products and firms; and,
Enforcement approaches and practices to address and mitigate the risks posed by unlicensed firms offering the relevant products to retail investors.
IOSCO members are encouraged to consider adopting one or several of these measures, in accordance with their legal and regulatory framework and the specific risks they have identified. The toolkits described in this report do not mandate regulatory action. In addition, measures should be implemented in light of the specific risks that have been identified in the respective jurisdiction. Therefore, implementation of the different measures may vary across IOSCO members.