New Belgium FSMA Boiler Room Warning for Broker Victims


Belgium FSMA Boiler Room warning for broker victims has been issued recently following the ban on highly speculative financial instruments last year by the Belgian watchdog. Do you know what is “boiler room” fraud?

6 April AtoZForex  We learned last month that the Belgium’s Financial Services and Markets Authority (FSMA) blacklisted a large number of entities. Following this, the FSMA again issues a list of unauthorized and unregulated brokers that are offering financial and investment services in Belgium.

Belgium FSMA Boiler Room warning for broker victims

The entities comprising the last warning list of FSMA were companies offering binary options, Forex products, CFDs, and other derivatives. The recent list mainly includes a number of boiler rooms. However, the Belgian watchdog has already warned in the last warning about the growing number of boiler rooms. This shows that financial regulator has been quite active in terms of regulating and safeguarding the markets.

The Belgian financial regulator body updates its warning list by adding the below-listed entities. According to the FSMA, the companies seem to be operating unlawfully in the country. Hence, the watchdog warns the Belgian citizens against dealing with the companies engaging in unauthorized activities by issuing this list. The FSMA has issued an individual warning for each of these listed companies. To view their individual warning in detail, click on the firm name.

Aichi BMO International (ABMOI) / Leiyu Trade Limited / GHY Partners Limited www.ai-international.com
Apex Alliance www.apex-alliance.com
Citic Tokyo International / Bai Xin Cheng Limited / Jin Yam (HK) Trade Co., Limited www.citicinternational.com
Drukenmiller Investment Services / Timmermans Asia Ltd / Hansen Peters Ltd / Sarandon Asia Ltd www.drukenmiller-investment.com
Lexus Group / MCA Advisors / Raeat Holdings Limited www.lexusgroup.com / www.mcaadvisors.com
Sino Link Japan / Mypal International Co, Limited / Bai Xin Cheng Limited www.sinolinkglobal.com
West Pacific Dealers www.west-pacific-dealers.com

 

Moreover, according to the FSMA information, the above companies are engaging mainly in boiler room frauds as per the statement. Therefore, the watchdog alerts the investors against the unlawful activities of various boiler rooms that are contacting the Belgians.

What is boiler room fraud?

A type of fraud that usually involves unsolicitedly contacting the investors, generally by phone, with lucrative offers to sell them shares and/or other financial instruments is known as boiler room fraud. The financial products that they offer also enlist term deposit accounts, management accounts, investment in crowdfunding, investment advice, etc. In addition, the boiler rooms claim themselves to have the authorization to provide their services with professional websites. However, in reality, they are fraudsters that offer fictitious or worthless products or shares. The term “boiler room” came as the swindlers running such operations often do not hesitate to put the investor under severe pressure.

The Belgian watchdog notes that these boiler rooms are found to be targeting particularly the company directors and managers. Because of this, issuance of the Belgium FSMA boiler room warning for broker victims took place. Accordingly, the above companies do not have legal authority from the FSMA to provide any financial or investment services in or from within the Belgium.

Furthermore, the financial regulator warns the investors not to respond to any financial service offers made by the above companies. The FSMA also strongly advises against transferring money to any account they might mention. Read below the original Belgium FSMA boiler room warning for broker victims.

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