7 April, AtoZForex, Lagos – As with most other regulators around the world, the British Columbia Securities Commission (BCSC) is becoming increasingly cautious about activities of so called Forex and binary options brokers in its jurisdiction. The latest warning about activities of such brokers is as regards Interactive Option and its parent company Pegase Capital Limited, a firm which claims to be based in Cyprus, and offers a service to trade in binary options.
BCSC Interactive Option warning
The BCSC clarified that it discovered that at least one British Columbia (BC) resident was solicited to invest with Interactive Option. However, Interactive Option is not authorized to offer, trade in, or advise on, securities or exchange contracts in BC. Hence, the regulators have urged all BC residents to exercise caution when dealing with firms that are not registered to trade or advise in BC.
License suspended!
Besides the BSCS Interactive Option warning, another cause of caution is the fact that the company’s license has been suspended by the Cyprus Securities and Exchange Commission for the duration of about a month. It says on the firm’s website that “We would like to inform you that as of 4 March 2016, the Company’s CIF license with authorization number 225/14 has been suspended for a period of one (1) month by the Cyprus Securities and Exchange Commission (the “CySEC”).”
However, CySEC has extended the license suspension of Interactive Option and its parent company, Pegase Capital Limited. Initially, Pegase Capital Ltd’s license suspension was imposed after CySEC discovered that the CIF firm was non-compliant with eleven counts of the regulator’s regulation. Hence, back in November CySEC fined Pegase Capital Ltd €300,000, marking a hefty administrative fine of the Cypriot watchdog.
CySEC warns
Not only does Pegase Capital Ltd own the binary options brand Interactive Option, the CIF firm actually holds a varied portfolio of brands including HelloBrokers and MTX Plus. Ever since CySEC fined and suspended the license of Pegase Capital Ltd in November 2015, the Cypriot financial regulator issued on the 4th of March 2016 an announcement upon the case.
See also: CySEC ACFX license suspension
Thereafter, the board of the Cyprus Securities and Exchange Commission held a meeting on the 4th of April 2016, when it was decided that CIF firm’s license suspension of Pegase Capital Ltd with the number 225/14 will be extended. Yet, it was until today it was reported publicly that CySEC extends license suspension of Interactive Option parent firm.
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