The Financial Conduct Authority said on 25 September 2026 that 21 CFD firms had closed since 2025 and another three were cancelling their permissions, following action against businesses misusing UK authorisation to support overseas operations.[3]
The regulator’s concern was a mismatch between the credibility of an FCA-authorised company and the business actually serving customers. It described firms conducting little UK activity while lending that status to linked companies abroad.[3]
What the September announcement reported
| Action | Position on 25 September 2026 |
|---|---|
| Firm closures | 21 completed since 2025.Source 3 |
| Further permission cancellations | Three in progress.Source 3 |
| Other supervisory action | Trading restrictions and independent reviews.Source 3 |
| Enforcement | Two investigations into the most serious cases.Source 3 |
The action extends an established supervisory programme
The FCA’s December 2024 portfolio letter set a two-year supervisory strategy for CFD providers, including spread-betting and rolling spot-forex businesses. It also treated companies linked through a common ultimate beneficial owner as a group, making ownership connections relevant to scrutiny of overseas activity.[5]
That letter reported that none of the 100 EEA CFD firms entering the temporary permissions regime in January 2021 had received permanent UK authorisation at that point. This was a separate historical cohort from the closures announced in September 2026.[5]
A further warning on 30 October 2025 addressed pressure on retail customers to become elective professionals or move to overseas firms. The FCA said those moves could remove protections attached to a UK retail account. The September action develops that concern into firm-level closures and permission withdrawals.[4][3]
Which protections depend on the account
UK retail CFD protections in context
| Protection | Practical function |
|---|---|
| Leverage limits | Caps vary by instrument, limiting the exposure a retail client can obtain for a given deposit.Source 2 |
| Margin close-out and negative balance | Providers must close positions at the prescribed margin threshold and limit account losses to funds in the retail CFD account.Source 2 |
| Failed-firm compensation | Eligible investment claims may receive up to £85,000 per person per firm from FSCS; market losses are outside that cover.Source 1 |
The practical account check follows the FCA’s concern: match the company in the agreement to its permissions, then identify the service that company actually supplies. A group can contain both UK-authorised and overseas businesses, so that mapping explains whether the account carries the UK retail protections set out above.[3][5]
Sources & further reading
- Investment protection: eligibility and compensation limits Financial Services Compensation Scheme · Accessed 9 Oct 2026
- FCA confirms permanent restrictions on the sale of CFDs and CFD-like options to retail consumers Financial Conduct Authority · 1 Jul 2019 · Accessed 9 Oct 2026
- Twenty-four CFD firms closing in crackdown on misuse of UK authorisation Financial Conduct Authority · 25 Sep 2026 · Accessed 9 Oct 2026
- FCA warns investors in CFDs risk losing out on protections Financial Conduct Authority · 30 Oct 2025 · Accessed 9 Oct 2026
- Portfolio letter: FCA strategy for Contracts for Difference providers Financial Conduct Authority · 13 Dec 2024 · Accessed 9 Oct 2026