26 January, AtoZForex.com, Lagos – New Zealand’s financial market regulator, the Financial Market Authority (FMA) has joined its counterparts in issuing a stern public warning against doing business with the binary options broker, “Banc De Binary.” Both the Cyprus Securities and Exchange Commission (CySEC) and the Australian Securities and Investments Commission (ASIC) have previously had cause to issue a fine or warning against this firm.
Both the Australian and New Zealand regulators advised traders to avoid associating with this firm, prompting the Banc De Binary warning as its operations are not regulated in the respective jurisdictions. Even though this firm is regulated by CySEC, the regulator may not be able to guarantee the safety of clients outside its jurisdiction.
Binary options regulation
In both New Zealand and Australia, there is no segregated framework for binary options. Hence, binary options brokers are covered under the same laws that apply to Forex dealers. The Auckland headquartered Financial Markets Authority (FMA) has now clarified that Banc De Binary is not authorized to provide its binary options services in the country, issuing the FMA Banc De Binary warning.
Banc de binary CySEC fine
Aside the FMA Banc De Binary warning, a few months back the binary options firm was fined by CySEC. The financial regulator justified this decision by clarifying that the underlying reason for this action had to do with the flaws in the business dealings of Banc De Binary. This marked the second time that the binary options broker will incur a penalty for a breach of the regulator’s rules. And for a third time, CySEC again fined Banc De Binary due to violations of the prevention and suppression of money laundering and terrorist law.
Back in May, CySEC slammed the broker with a marked up fine of EUR 20,000 for a dual breach of CySEC business clause. The first breach constitutes a fine of €10,000, which was levied as a result of violations of Article 6 (9) of the Investment Services and Activities and Regulated Markets Law. Basically, this penalty defines that the binary options broker has been caught offering other operational services, which are not included in the coverage of its CIF license. Members of the public are therefore advised to deal with such a firm with caution as it operates in certain regions without due authorization.
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