Are you trading with UB4Trade? As New Zealand FMA Warns Against UB4Trade, we bring the caution note to your attention. What is the reason behind this warning?
29 December, AtoZForex – The key financial regulator of New Zealand, the Financial Markets Authority (FMA) has updated its warning list. The latest addition to the caution list of the New Zealand financial watchdog is the UB4Trade brokerage.
Trading with UB4Trade? New Zealand FMA Warns Against UB4Trade
The investors in New Zealand-based have received the new alert from the primary regulator in the market. The FMA has warned the investors’ community against dealing with UB4Trade brokerage, which is owned and operated by Finatex Ltd. The brokerage offers an opportunity to trade Stocks, Indices, Commodities, Currencies online.
The company has been blacklisted due to the inappropriate actions carried out by the entity. The behaviors do not comply with the regulatory requirements in the country. The official announcement from the FMA reads:
“The FMA recommends exercising caution before dealing with UB4Trade owned and operated by Finatex Ltd. We have received a report of acting outside the client instruction and unexplained withholding of client funds by Finatex Ltd. Finatex Ltd is not registered to provide financial services in New Zealand.”
As the UB4Trade has been included in the warning list of the FMA, it needs to respond to the regulator. The FMA notes that the entity has “not provided a satisfactory response” yet in regards to the accusations that are being brought against the company.
New Zealand regulator stays cautious in regards to the protection of the financial markets across the country. However, sometimes fraudsters adopt sophisticated schemes to mislead investors.
Just like this, earlier this October, FMA warned about a scam popping up across the country. That time, the regulatory authority has notified against the Financial Service Provider Commission (FSPC). The fraudulent entity has mimicked the FMA’s register for regulated services domestically.
However, all businesses and individuals offering financial services in New Zealand are under group’s Financial Service Providers Register (FSPR) registration. FSPC has been accused of regulating financial services itself, even offering its own recommendations.
In a related matter, the regulator claimed that the overwhelming majority of fake financial sites rigged to lure in victims with small early returns.
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