FCA closes 21 CFD firms following regulatory crackdown

The Financial Conduct Authority (FCA) has overseen the closure of twenty-one Contracts for Differences (CFD) firms since 2025 as part of a regulatory crackdown. The regulator took action against firms suspected of misusing their authorized status to mislead consumers.

Specifically, the FCA is targeting firms that conduct minimal business within the UK but use their UK authorization to make linked overseas companies appear more trustworthy. This practice creates a false impression that consumers are dealing with a UK-regulated entity and are entitled to UK regulatory protections when they are not.

In addition to the closures, three other firms are currently in the process of cancelling their permissions. Enforcement actions taken by the FCA have included restricting trading abilities, mandating independent business reviews, and launching formal investigations in serious cases. Dominic Holland, director of sell-side supervision at the FCA, stated that the regulator will intervene when firms blur the lines between UK-regulated activities and overseas operations to ensure consumers understand exactly who they are dealing with.