Product intervention: BaFin plans to restrict trading in turbo certificates

Erscheinung:17.06.2025 Product intervention: BaFin plans to restrict trading in turbo certificates BaFin is planning to restrict the marketing, distribution and sale of turbo certificates to retail investors residing in Germany. It will issue a general administrative act on this matter and is currently conducting a hearing of the market participants concerned. The product intervention is the result of a market survey by BaFin. In light of the survey’s findings, BaFin has significant investor protection concerns.It is planned that the marketing, distribution and sale of turbo certificates to retail investors residing in Germany will only be possible under certain conditions. The addressees of the general administrative act – intermediaries, issuers and providers – will have to adhere to the following requirements:The addressees will have to provide a standardised risk warning stating that seven out of ten retail investors incur losses when trading in turbo certificates. The risk warning must be included in all communications that serve the purpose of marketing, distributing or selling turbo certificates.The addressees will not be allowed to grant any bonus that incentivises retail investors to trade in turbo certificates. This will apply to monetary and non-monetary benefits. For example, it will not be possible to reduce or waive order fees for turbo certificates or to grant any new customer bonuses. Non-monetary benefits such as preferential customer service or gifts...