31 March, AtoZForex, Lagos – Just like other financial regulators world over, the Central Bank of Hungary (CBH) is concerned about the dealings of some specific firms, carrying out financial operations within its jurisdiction without the requisite authorization to do so. The Hungarian central bank has now blacklisted the firms "Different Choice FBC Inc. and Forex Club Inc."
International business address
According to the CBH, these firms have been carrying out investment operations in relation to Forex activities. Different Choice FBC Inc. claims an office address of Global Village, Room 3&4, P.O.Box931, Mont Fleuri, Mahe, Republic of Seychelles. While Forex Club Inc. states it office address as PA- Panama City, Suite H, 50th Street Global Plaza Tower 19th Floor. It is however clear that these firms are neither authorized nor licensed to carryout the activities for which they purport. “Especially receiving and transmitting client orders and portfolio management, services activities or conduct financial operations as per Section 5 of Investments services act (Act CXXXVIII of 2007) in Hungary.”
Unauthorized managed account services
After deep investigation into the activities of these firms, the Central Bank of Hungary discovered that under the trading name DCFXBroker, Different Choice FBC Inc. offered online trading services for over 41 different financial products in the foreign exchange markets. They also carryout managed funds services by using master account (ST1). Thus account operates such that client accounts opened and held with the broker could be linked to a master account. The master account is then being managed by Forex club Inc., pursuant to the client signing a Limited Power of Attorney.
See also: CFTC uncovers $50 million unregulated FX scheme
Central Bank of Hungary warning
Typically, under such arrangements, it is worthy to note that all financial losses are often borne by the clients, with neither the fund manager nor the broker taking any responsibility for losses or damages. Even if such losses occur as a result of poorly managed activities or any negligence on their path. Hence, the Central Bank of Hungary warns investors and others about doing business with such firms, therefore prompting the DCFXBroker and Forex Club warning.
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