FCA Says 24 CFD Firms Are Closing After UK Authorisation Crackdown

The Financial Conduct Authority said on September 25 that 21 contracts-for-difference firms have closed since 2025 following its crackdown on the misuse of UK authorisation. A further three firms are cancelling their permissions, according to the regulator.

The FCA said it had challenged firms that did little UK business but used their authorised status in ways that could make linked overseas companies appear more trustworthy. That can give customers the impression they are contracting with a UK-regulated business and receive UK protections when that is not the case. The regulator said its interventions included restrictions on trading activity, independent business reviews and enforcement investigations in the two most serious cases.

The release is not a change to the CFD product-intervention rules. It is a supervision and conduct action aimed at how authorisation is represented to prospective clients.

Why it matters

CFD traders should identify the exact legal entity that opens the account, holds client money and provides the product. A familiar brand or a reference to UK regulation is not enough if the client agreement is with an overseas affiliate. The FCA also reiterated that CFDs are complex, leveraged products where losses can build quickly.

What to watch next

Watch for any public enforcement outcomes from the investigations and for updates to firms’ permissions on the FCA Register. Before funding an account, traders can use the FCA’s Firm Checker and compare the regulated entity named there with the entity in the account agreement.