France seems to be one of the European countries that are the most active in trying to manage and sanction fraudulent activities in binary options and forex trading. They have even banned digital advertising of what they consider to be high-risk products. This includes both binary options and CFDs with high leverage. AMF, as a financial markets regulator, has been cooperating with other regulators in attempts to curtail illegal operations of financial companies that have been offering their services to French traders.
However, despite their efforts, fraudulent activities concerning the financial market are still highly prevalent in France.
In 2016 France’s Prudential Supervision and Resolution Authority (ACPR) released the Annual Report that indicated that complaints against such companies are still in high numbers. The Report shows that in 2016 the ACPR received 6,577 complaints which is 11% less than the previous year. However, in 2015 there were 31% more complaints than the year before that which clearly implies that there is a reason for concern.
After going over the Report, ACPR asked 10% of the companies in question to submit their explanations for the complaints filed against them. Quite a large number of those involved both binary options and Forex frauds.
These results seem to correspond with the Annual Report for 2016 that was made by the AMFs Ombudsman Office. They received a total of 116 complaints against financial firms in the EU jurisdiction which were connected to binary options and/or Forex companies. This is a slight decline from 2015 but it is still very much alarming when taking into account that 83% of those complaints were referencing firms regulated in Cyprus.
The Ombudsman stressed that there is a strong influence of advertising these high-risk products by football clubs but also the tactics of aggressive phone calls. This strongly corresponds with the study made by the University of Aix-Marseille that showed how financial trading companies use very aggressive tactics such as ‘’foot in the door’’ in order to manipulate potential traders.
ACPR also went over the total of 3,933 ads that focused on financial products alone. The fact that there were so many to review clearly shows that there is a need to try to handle such misleading advertising tactics for high-risk trading products.