FCA Crackdown Leads 24 CFD Firms to Close Over UK Authorisation Misuse

The UK Financial Conduct Authority (FCA) has announced that 24 Contracts for Differences (CFD) firms are leaving the UK market following action against the misuse of regulatory authorisation.

Since 2025, 21 CFD firms have closed, while three more are currently cancelling their permissions. The FCA said it was concerned that some firms were using their UK authorisation to make connected overseas businesses appear more credible to consumers.

FCA targets misleading use of UK authorisation

The regulator has been challenging CFD firms that conduct limited UK business but use their authorised status to suggest customers are dealing directly with a UK-regulated entity.

This can lead consumers to believe they benefit from UK regulatory protections when their actual relationship is with an overseas firm.

The FCA has taken several supervisory and enforcement measures, including restrictions on firms’ trading activities, requirements for independent business reviews, and enforcement investigations in the two most serious cases.
For compliance teams, the action highlights the importance of maintaining clear distinctions between regulated UK activities and connected overseas businesses. Firms should also ensure their marketing, corporate structures and customer communications do not create misleading impressions about regulatory status.

Compliance implications for CFD firms

The FCA also reminded consumers that CFDs are complex products that can involve significant leverage and rapidly increase potential losses.

Firms operating across jurisdictions should ensure customers can clearly identify the legal entity providing services and understand which regulatory protections apply.

The FCA recommends that consumers use its Firm Checker before opening an account to verify whether they are dealing with a UK-authorised firm rather than an overseas business with a similar name.

The enforcement action signals continued FCA scrutiny of firms whose structures or communications could blur the boundaries between UK authorisation and overseas operations.