FSMA issues warning against brokers

Belgium flag, FSMA issues warning against brokersFinancial Services and Markets Authority (FSMA) along with the National Bank of Belgium (NBB), are entrusted with the supervision of the Belgian financial sector. In carrying out this duty, the regulators have again red flagged some firms as it states that the companies are not adequately licensed to offer investment services in Belgium.

The FSMA published a recent caution announcement on its website, informing clients of the unauthorized brokers who are selling investment instruments involving high risk in the country, without complying to due regulations.

One of the important criteria to offer investment products within the country is provision of an FSMA approved prospectus to clients, but these companies did no such, along with lacking necessary licensing to operate in the region. The following companies were on FSMA’s list of:

  • Financial Broker,
  • F&C Management Limited,
  • SIA Europe Trade Services,
  • FXGL Capital,
  • HCI Fund,
  • Royal Broker,
  • BfmMarkets,
  • BoursoMarket,
  • Bankandcapital
  • OBinary Corporation

The financial regulators further warned the public that just because an official warning has not been published about a specific provider of Forex, CFDs or binary options, this does not automatically qualify the broker as an authorized dealer, hence investors and traders should stay cautious of possible fraudulent brokers after FSMA issues warning against brokers in the region.

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