The UK Financial Conduct Authority has published findings from its survey of 81 contracts for difference firms, identifying continuing concerns about whether overnight funding charges comply with the Consumer Duty’s price and value and consumer understanding outcomes. Most firms had made or planned changes following the regulator’s November 2025 review, but many changes were minor and did not materially alter pricing or value. The findings apply to FCA-authorized firms that manufacture, promote or distribute contracts for difference, spread bets or rolling spot forex to retail clients. Most firms broadened their fair value assessments to cover all consumer costs and charges, while several adopted comparisons with UK-regulated peers and strengthened onboarding, appropriateness testing or vulnerability monitoring. Communications also improved, but charges often remain insufficiently prominent, overnight funding markups are largely opaque and only a minority of firms show projected annual percentage rates. Just 12% of firms had changed or planned to change charges, including by reducing overnight fees, paying interest on cash balances or revising calculations. The FCA is particularly concerned about firms charging full overnight funding spreads on matched or hedged buy and sell positions, including where firms encourage such trades through reduced or waived margins. Firms should assess whether outlier rates and charges on matched positions provide fair value, clearly explain the costs and alternatives, and demonstrate that they have reviewed their charging structures. The FCA will continue monitoring these practices and follow up individually where it has concerns.

Original source