Twitter Logo Youtube Circle Icon LinkedIn Icon

The Legal 500 Hall of Fame Icon The Legal 500 Hall of Fame highlights individuals who have received constant praise by their clients for continued excellence. The Hall of Fame highlights, to clients, the law firm partners who are at the pinnacle of the profession. In Europe, Middle East and Africa, the criteria for entry is to have been recognised by The Legal 500 as one of the elite leading lawyers for seven consecutive years. These partners are highlighted below and throughout the editorial.
Click here for more details

Germany > Legal Developments > Law firm and leading lawyer rankings


BaFin – Binary options still off limits to retail investors

July 2019 - Finance . Legal Developments by GRP Rainer LLP.

More articles by this firm.

It remains illegal in Germany to sell binary options to retail clients according to an administrative act of Germany’s Federal Financial Supervisory Authority, the BaFin.

With binary options, it’s either make or break. Yet underlying these “bets” is a complex and opaque financial product. We at GRP Rainer Rechtsanwälte note that it was due to their high-risk nature that the ESMA decided to prohibit the marketing, distribution, and sale of binary options to retail investors in the EU.

While the ESMA’s measure expired on July 1, 2019, the BaFin maintained the prohibition on offering and selling binary options to retail clients in Germany in an administrative act applicable from July 2, 2019.

The BaFin justified its decision with reference to the high risks as well as significant concerns regarding investor protection, particularly with regard to calculating the performance of binary options and the underlying asset, noting that it is difficult for retail investors to accurately assess the risk-return profile. Moreover, since binary option providers act as the direct counterparty, this may give rise to a conflict of interests and manipulation.

Despite the prohibition, there are still criminal providers intent on ripping off retail investors. Lawyers experienced in capital markets law can offer advice.

Interview with...

Law firm partners and practice heads explain how their firms are adapting to clients' changing needs

International Law Firm Networks

International Law Firm Networks