The FCA has released two warnings about clone firms that are misleading investors. One of the clone firm presented themselves as the FCA Forex broker FXCM. The UK regulator has summed up all the details in the released FCA FXCM clone scam warning.
23 August, AtoZForex - The Financial Conduct Authority (FCA) has issued two new warnings today – this time, in regards to the multi-asset broker FXCM clone and Active Funds ICAV clone. Traders and investors are cautioned for the consequences and need to avoid these firms at all cost.
FCA FXCM clone scam warning
The clone firm is FXCM International Finance Group and its brand name is very similar to the FCA regulated FXCM UK Limited. FXCM International Finance Group contacted clients and persuaded them that they were FXCM UK Limited. During the cold calls to the potential investors, the clone company referred the interested investors to an address in China. Hence, it should be noted that the originally authorized firm is located at The Northern & Shell Building, 8th floor, 10 Lower Thames Street, London, EC3R 6AD, England.
After a thorough research, the FCA exposed FXCM UK Limited clone misleading operations in the UK. Moreover, FXCM International Finance Group lacks the necessary authorization of the UK regulator. Which means that the clone firm has violated two major regulation sections. Through this warning, the financial regulator hopes that the traders become more cautious when dealing with online trading companies and considering the options of investing or funding an account. Needless to say, it strongly advised to refrain from any deals with FXCM International Finance Group.
Another FCA clone firm warning Active Funds ICAV
Aside the case of the FCA FXCM clone scam warning, the FCA unveiled another clone firm Active Funds ICAV. The firm lacked authorization and was disguising itself as a licensed and authorized broker. Active Funds ICAV completely copied the name and address of a FCA licensed entity. Their aim was to abuse the legitimate's brand name to come across trustworthy and reliable when attracting new investors.
The regulatory authority warns against dealing with Active Funds ICAV, traders should avoid investing funds with the financial firm. Lastly, the FCA reminds traders again that they should always double check if a broker is properly licensed, in order to become eligible for the compensation fund.
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