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Kristina Frunze

13 June 2018

Forex

Austrian Regulator FMA Warns Against Sun Capital

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Austrian regulator FMA warns against Sun Capital, while highlighting that the brokerage has no legal registration in the country. What do we know about the firm?

13 June, AtoZ Markets The regulatory body of Austrian financial markets, the Austrian Financial Markets Authority (AFMA), has made an announcement on its website, warning investors against dealing with an unregulated brokerage going under the name Sun Capital Limited.

Austrian Regulator FMA Warns Against Sun Capital

The AFMA has highlighted that Sun Capital offers trading and investment services to Austrian clients. In order to do this legally, any firm in Austria would need to obtain a license. However, reportedly, Sun Capital Limited is lacking such trading license. Therefore, the Austrian regulator has decided to issue a warning against dealing with this firm. 

Sun Capital is based in Saint Vincent and the Grenadines. The company is operating online via tradeu2.com and is claiming to have an office in Italy, Germany, and Switzerland.

The official announcement on FMA’s website’s reads:

“Pursuant to Article 4 para. 7 of the Bankwesengesetz (BWG; Banking Act) and Article 92 para. 11 of the Wertpapieraufsichtsgesetz 2018 (WAG 2018; Securities Supervision Act 2018), the Austrian Financial Market Authority (FMA) may disclose to the general public by publication on the Internet, in the official gazette “Amtsblatt zur Wiener Zeitung”, or in any other newspaper with nationwide circulation, that a particular natural or legal person (person) is not entitled to carry out certain banking transactions (Article 1 para. 1 BWG) or investment services (Article 3 para. 2 nos. 1 to 4 WAG 2018), provided that said person has given cause for such action and informing the general public is deemed necessary and reasonable with regard to possible disadvantages of the person concerned.”

Following on this, the website of the brokerage is listing a number of major financial services companies at the bottom of its page. For instance, the firm has mentioned Goldman Sachs, BNP Paribas, and Morgan Stanley as the organizations that confirm the legitimacy of Sun Capital Limited.

Latest FMA Warning

Earlier in December 2017, the watchdog has cautioned investors against dealing with the company that goes under the name Spot2Trade Ltd.

The Austrian regulator states that it is not recommended to deal with this firm. By updating its warning list, the FMA aims to safeguard investors’ community in Austria from the potential losses.

Spot2Trade is operating online via www.spot2trade.com. According to the information on its website, the firm offers an opportunity to trade Forex, stocks, binary options and commodities. The company allegedly has an office in the UK on the following address: Spot2Trade Ltd, Portman Square, Green St 14 33W1H 6BG London, UK.

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Austria FMA Sun Capital

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