22 June, AtoZForex - The Financial Conduct Authority (FCA) continues its journey on protecting the investors by warning them about unregulated entities that target UK customers. Many of those unauthorized entities claim that they have offices and physical presence in the United Kingdom. The latest announcement on this topic came out today: the FCA warns BancoFX and CFD 1000 over authorization issues.
FCA warns BancoFX and CFD1000: details
Banco FX presents itself on its website as innovative British financial services provider, who offers services related to Forex, stocks, and commodities. The broker BancoFX claims to be a part of FX British Registered Partners, which appeared to be a fake made-up organization, where the broker is the only member. The CFD 1000 Limited is dedicated to developing lucrative trading environment, according to the firm's website. The broker claims to have two offices both located in London.
Both firms have been providing their financial services in the territory of the United Kingdom without the proper FCA authorization. Whereas almost all entities including firms and individuals, who want to promote their financial products or services in the UK must attain an authorization from the regulator. However, it’s not something new in the Forex market that many firms act knowingly and run scams targeting the potential investors.
|Broker name:||BancoFX||CFD 1000|
|Physical address||333 Vauxhall Bridge Road, London||88 Wood Street, London EC2V 7AJ and 2 Woodberry Grove, Finchley, London, N12 0DR|
How to protect yourself?
The FCA strongly advises to deal only with authorized financial entities and check the FCA’s Financial Services Register to check the status of the firm. If the firm does not appear on the Register, however, it claims that it does, the trader should contact FCA Consumer Helpline on 0800 111 6768. The watchdog warns that if potential investors give their funds to an unauthorized firm, their losses will not be covered by the Financial Ombudsman Service or Financial Services Compensation Scheme in case they will be scammed.
See also FCA alleges five individuals in £2.75 m boiler room fraud
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