City Index Ltd Fined £35,000 by FSA
Company fined £35,000 for misleading financial promotions for spread betting and Contracts for Differences (CFDs)
23rd March 2005
City Index Ltd has been fined £35k by the Financial Services Authority (FSA) for producing misleading financial promotions for its spread betting and FCD services.
The company advertised its promotions through daily newspapers, magazines and carrier bags. The FSA found that thier marketing strategy did not give sufficient information on the commitment required by high risk investments, under which both spread betting and CFDs fall.
The FSA also found that an offer of a 'free' £25 bet was an unfair description, as customers first needed to place a paid-for spread bet before they could take advantage of the offer.
Read More: Financial Services Authority
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Products from City Index : Spread Betting |
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