Today, the Danish financial regulator (FSA) issued a warning against binary options affiliate Den Danske Metode. On what grounds was the Den Danske Metode FSA warning issued?
8 August, AtoZForex - Following last week's action undertaken by the French watchdog, the Danish regulator decided to take measures as well. Considering that the Danish regulator - Financial Supervisory Authority (FSA) - oversees the securities markets in Denmark, guaranteeing that the listed companies act in compliance with their commitments.
Today, the Danish watchdog has issued a warning against binary options affiliate Den Danske Metode. Based on the discovery that Den Danske Metode has been promoting its services to Danish clients without a license or authorization.
Den Danske Metode's missing contact details
The affiliate, Den Danske Metode, came under the attention of the local regulator when reports were made that no registered address is given on its website. When assessing the website of Den Danske Metode, danishmethod.com, it is clear that the company does not have a usual "contact us" page. Yet, after searching through the affiliate's terms and conditions page, one can see that Den Danske Metode claims to be registered in the US with the following address: 1000 5th St., Suite 200 Miami Beach, FL 33139.
Having discovered where the affiliate claims to be based, the other contact details of Den Danske Metode remain in question. However, in response to the lack of a proper contact us page, Den Danske Metode claims to have a 24/7 customer support service for members only: "We have an email support, but more importantly we have a live chat system in the members area, where our support staff is ready to help around the clock." This statement raises questions and doubts about the affiliate already. As to why is the live chat or email support service unavailable for potential clients, or the media?
The Danish affiliate promises unrealistic ROI
Aside, the missing contact details, Den Danske Metode is making unrealistic profit claims on its website. On its FAQ page, the affiliate claims without presenting facts that: "Most of our members with a deposit of 3000 KR, earn around 8000-10000 KR per day. Those who put more than 10,000 KR or more into their account, earning over 25,000 per day." Moreover, the website is only focused on the promotion of its members' success stories through live updates of clients' profits, social media success claims, and a promotional video.
However, when it comes to compliance, presenting the facts or simply disclosing by which regulator the firm is authorised, this information is not to be found on Den Danske Metode's website. Also, note the fact that these types promotional schemes which guarantee high profits to traders are often found to be scams. Based on these findings the Den Danske Metode FSA warning has been issued.
Through this warning, the Danish financial regulator has also taken the opportunity to warn the public to always double check if a firm is authorised to offer its investment services in Denmark. Investors are encouraged to visit the regulator’s website anytime at finanstilsynet.dk, to view the list of authorized companies and the blacklisted firms.
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