Belgium regulator FSMA warns investors against Boiler rooms


The fight for justice continues, as Belgium regulator FSMA warns investors against Boiler rooms in its latest attempt to protect investors’ community. “Beware of Boiler rooms!”, says FSMA.

28 November, AtoZForex The key financial supervisor of the financial markets in Belgium, the Financial Services and Markets Authority (FSMA), has issued an announcement for investors on its website. The financial markets watchdog has issued a warning against several unauthorized companies operating on the market.

Belgium regulator FSMA warns investors against Boiler rooms

As a matter of fact, the Belgium FSMA has cautioned investors against multiple boiler and recovery rooms that offer investment services in the country. The regulator notes that the entities operate without any valid permission from authorities. Indeed, the FSMA states that the companies do not comply with Belgian financial law.

The FSMA monitors financial trading, securities, and numerous assets activities across the country. One of the key aims of the regulatory body is to ensure complete compliance from the market players and to protect investors’ interest and funds.

The latest warning from the FSMA comes as the most recent attempt to clamp down on the firms that engage in fraudulent activities. Specifically, the Belgian FSMA has warned investors against dealing with the following companies:

  • Ashida Associates (www.ashidaassociates.com)
  • Sapporo International (www.sapporointernational.com)
  • Tokai National Partners (www.tnpsecurities.com)

The FSMA states:

“The FSMA strongly advises against responding to offers of financial services by these companies, which are not authorized to provide investment services within Belgium.”

How to protect yourself against financial fraud?

The regulator further states that these firms and associations reach out to victims claiming that for a fee, they can help them recover the funds invested/losses. The FSMA notes that some of the abovementioned firms are clone firms. In fact, clone firms appear as a common kind of fraud, where a firm pretends to be the genuine company in order to mislead investors.

In its official announcement, the Belgian regulator states:

“Boiler room’ fraud is a type of fraud that generally involves contacting consumers unsolicited, often by telephone, offering to sell those shares or other financial products.

Although ‘boiler rooms’ claim to be authorized service providers with a professional website and forms to fill out, they are in reality fraudsters who offer fictitious or worthless products or services.”

In order to protect yourself, FSMA also recommends consulting with its general recommendations, which can be found here.

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