SFC Crown Star FX warning

 4 April, AtoZForex, Lagos – The activities of clone firms seem to be getting even more rampant, despite relentless effort from various financial regulators to combat this dubious practice. Clones operate such that they try to replicate the image of a legitimate company, to deceptively utilize the goodwill genuine companies in carrying out its own bid and possibly defraud unsuspecting individuals. Hence, the SFC Crown Star FX warning.

The most recent case discovered by Hong Kong’s Securities and Futures Commission (SFC) relates to the activities of Crown Star Investment Limited. This firm has now been added to the SFC’s alert list, with the regulators noting that the firm is running illicit financial operations in its jurisdiction, without the due authorization to do so.

Crown star false claims

Crown Star Investment Limited operates via www.csigrouphk.com, offering a variety of investment services. On its website, it claims that: “Crown Star Investment Ltd is a leading Hong Kong financial services firm that strives to offer the best in recommended investment vehicles to a global market. As an award winning company, we provide traders access to a variety of equities, funds and placement into blue chip, which are sourced from a range of liquidity providers.” It also falsely claims Crown Star Investment Ltd is an Authorized company . The SFC further noted that the company has stated an incomplete business address as The Center, 99 Queen’s Road, Central, Hong Kong.

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See also: AMF blames unregulated forex broker deals with football clubs

Clone of Vantage FX?

Crown star investment can also be regarded as a clone firm, which is another reason for the SFC Crown Star FX warning. Considering that its website bears some striking similarities with that of vantage FX, an Australian Securities and Exchange Commission licensed firm. The practice of cloning has become quite rampant in recent times, with many regulators taking a hard stance against the act. Hong Kong’s SFC is no different, as they constantly update their alert list with firms found guilty of this. The regulator has now warned the public from dealing with any of the above mentioned clone firms, as they are not licensed to carryout the services they claim to offer, and are most likely out to defraud individuals.

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