Finanstilsynet, the Norwegian financial regulator, plans to ban or restrict dealing in some highly risky financial products this summer.

The regulator is arguing that many Norwegian consumers have been misled about the products and have lost significant amounts. Jo Gjedrem, Finanstilsynet's director of consumer protection, recently told reporters that his organisation is proposing a ban on marketing, distribution and sale of binary options to non-professional investors. In addition, it wants to restrict consumers' access to contracts for differences. Both types of investment are wagers on price movements over chosen periods and involve a high risk of loss.

Norway's consumer inspectorate supports the proposal fully. A consultative process ended on 26 March and the regulator will 'determine' its policy during the summer or early autumn.

Both in Norway and in mainland Europe, marketing for these products has seen a sharp rise in the last few years. The Norwegian authorities are worried about the finances of non-professional customers. A recent audit has shown that more than 80% of customers who have purchased contracts for differences have lost out - some of them losing more than they put in.