New Broker Warnings Issued Around the Globe

New Broker Warnings From Regulators Around the Globe!

New broker warnings are being issued all around the globe; The number and frequency of warnings are increasing by regulators. The reasons for the warnings vary from case to case, however, unauthorized, unlicensed and unregistered brokers are the ones drawing the attentions of regulatory authorities worldwide. Target brokers are being added to RED lists and black lists to help limit the number of potential victims on an almost daily basis.

 

 

CySEC Issues Several Warnings

CySEC recently issued three warnings against three different brokers, none of the firms are allowed to provide any sort of investment services in the country. CySEC says the companies behind the brokerages have never been authorized nor regulated by the Cyprus Securities and Exchange Commission, a claim that many scam brokers fall back on. Further, one of the brokers CySEC issued a warning towards Bloombex, had already made it into the U.S. Commodity Futures Trading Commissions (CFTC) ‘RED list’. The RED list is a database where traders can find unregistered and illegal firms.

 

A broker claiming to be authorized, but really isn’t, is worrying New Zealand’s FMA. The Financial Markets Authority is the only financial regulatory in New Zealand – but one broker claims they are regulated by the New Zealand’s Securities and Exchange Commission that does not in reality exist. It’s simply a made up authority and that concerns FMA because it is misleading clients and is a source of many complaints.

 

Warnings Might be Withdrawn, Says Swiss FINMA

The FINMA, Swiss Financial Market Supervisory Authority recently updated their list of warnings but may in fact be error. In this case, the problem was the brokers address. It was not listed in the commercial register and hence added to the warning list. FINMA says that further due diligence is in progress and if the issue is solved the warning can be withdrawn. However and if necessary, FINMA says they will take actions to close the company if they don’t comply with all regulations.

 

Japan, Spain & British Columbia Struggle with Authorized Brokers.

Regulators in Japan, Spain and British Columbia are fighting a war against unauthorized firms offering investment businesses in their countries. Each of these countries allows binary options trading, so long as it is properly regulated. Japan Warns against a brokerage with no physical address and further adds; even with an address, the firm must have a Japanese license to be allowed to target Japanese investors. In Spain, CNMV warned against two unauthorized brokers. One of the brokers being warned is already in trouble with Canadian regulators. Finally, the British Columbia Securities Commission added a newcomer to its caution list, a broker that has also been warned by other Canadian provinces.

 

 

Regulators Issue Warnings – Brokers Change Targets

While regulators are issuing warnings, unauthorized brokers change target countries as a countermeasure. Once warned, a broker can simply focus on preying on new victims in another country. The reason is the lack of a global database, coordination, regulation or cooperation. A few regulators seem to be in touch and sync their warning lists but they are not the norm. Nevertheless, the burden of due diligence lies with the investors. They must remain cautious and identify fraudulent, untrustworthy or unlicensed brokers on authentic regulatory websites before engaging in any kind of investment.

 

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