- Echoing its Aussie counterpart, New Zealand’s FMA expands its blacklist and adds new names.
- Fraudsters either operate simply without having a licence from the regulator, or forge it to allure investors in the markets to knock on their doors.
On their website, FMA New Zealand draw the public attention on 28 November 2018, to that it noticed the warning its Australian counterpart ASIC published recently, in which the latter advised that Igoten OU, also known as BrighterTrade, “could be involved in a scam”.
The Aussie regulator explicitly recommended not to deal with the aforementioned firm, for it was not issued a valid licence in Australia.
As per the reports, BrighterTrade was involved in making “unsolicited calls or sent emails about investing, financial advice, credit or loans and does not hold a current Australian Financial Services (AFS) licence or an Australian Credit licence from ASIC.”
A valid licence is a lifebuoy in business, and its absence means sinking!
Not holding a valid licence from the financial authorities on the lands where a company operates and works, is a big red flag for that business to be pointed to as fraudulent, otherwise, as analysts explain, there would have been no barrier for it to secure a legal paper that shows it is authorized to practice the business and it is safe for clients to get involved in operations with that company.
Brighter Trade, which claims to be operating from Estonia as its address shows, claims on its website as well that it provides a trading platform, on which clients can trade a number of assets ranging from currencies (forex), commodities, stocks, and indices, as supposed.
In a similar context, AtoZ Markets had published earlier this month a news, in which it said that the New Zealand financial watchdog FMA marked CCM Clearing LTD as an unauthorized company, for not having a valid licence by the aforementioned regulator.
It is becoming more popular nowadays that scammers tend to fake out websites of officially authorized companies, in a way that make them look they hold a valid licence, in their endeavours to drain investors and consumers’ pockets. Often, that happens as forging the stamp of the regulator, along with copying the signatures of their officials and putting them on the counterfeit website.
Financial regulators warn on constant basis about such practices and advise consumers and investors to always check with the financial authorities of the country the company they wish to deal with is based.