Download PDF:
Letter Summary:
The CSA, other than BC, are proposing to implement NI 91-102 as a means of implementing a prohibition in line with that set out in prior AMF proposal. The purpose of the Proposed Instrument is to protect investors from becoming victims of binary options fraud, by raising awareness that these products are illegal and by disrupting the advertising and facilitation of these products. To this end, the Proposed Instrument will explicitly prohibit advertising, offering, selling or otherwise trading a binary option to an individual.
Overview of the Council’s Comments:
The council supports the proposed Binary Option Prohibition but questions whether other financial instruments that raise similar investor protection concerns should also be restricted. The Council is also of the opinion that binary options for durations longer than 30 days may also present certain fraud risks and could also be restricted.