The UK Financial Conduct Authority (FCA) has issued warnings for investors in regards to unlicensed brokers in the UK. Which firms has been added to FCA warning list this time?
14 June, AtoZ Markets – The financial regulator of the UK markets, the Financial Conduct Authority (FCA) has issued a number of warnings to investors. The warnings urged investors not to use the services of several fraudulent financial brokerage firms.
Regulator FCA reveals three unlicensed brokers in the UK
The latest warnings from FCA UK feature three firms that are operating illegally on the territory of the UK. The flagged brokerages include Forex and Binary Options firms that appear to be soliciting and accepting funds from the UK residents. However, all of the firms under the spotlight are missing FCA registration.
As per the City watchdog, many of these entities are carrying out activities that require them to have FCA license. In fact, the regulator notes that the registration enables entity to provide greater security and oversight of the industry. The FCA examines whether firms are meeting the minimum financial standards. The regulator also evaluates the disclosure, reporting, and recordkeeping requirements.
Concerning the latest warnings, the FCA has cautioned investors against clone firm 4 You Limited. According to the regulator, the firm is impersonating the FCA-authorized firm called Independent Financial Services 4 You Ltd.
It appears that individuals in the UK have also been targeted by another clone firm, entitled Viking Investments Global. The fraudulent company has been using the details of Viking Global Investors Europe LLP.
Another firm to wary of is a lesser-known Forex broker Capital City Holdings. The FCA stated that it was red flagged following the fact that the company has claimed it operated with an FCA license. However, the watchdog made it clear that the company in question does not possess any valid license of any kind. The FCA has added that Capital City Holdings has no authority to provide investment services or activities in the country.
Just at the beginning of this week, the regulator has cautioned investors against dealing with a clone firm Efforex. The latter has been posing as LMAX Exchange, which is a London-based multilateral trading facility (MTF). LMAX Exchange has an FCA license.
The UK watchdog has stated that this clone firm is not associated with the UK regulated company LMAX. It has also added that fraudsters are falsely claiming the name, company number, and address of the LMAX Exchange
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