Two More Unregulated CFDs, Busted in the UK

0
66
UK: Financial Conduct Authority website homepage.

The Financial Conduct Authority red-flagged two unregulated online trading providers in the UK, namely Platinum CFD and STI-Global.

STI-Global offered a full range of offshore investment to Britons, including forex trading services. The firm’s website states the UK’s FCA operated the firm, but the watchdog claims it is fake.

Platinum Global Group Ltd., on the other hand, promotes complex and risky trading instruments.

The European regulator ESMA issued measures to restrict CFD marketing to retail clients in 2018. This temporary intervention measures became permanent in last year’s second half.

Firms might consider evading ESMA’s measures with overseas brands or high-leverage products. FCA said it was aware that other products could create similar risks in CFDs for consumers.

Last March, the FCA warned British investors not to take any financial services with 4XFX for the same reason. 4XFX offers services for securities, derivatives, cryptocurrencies, commodities like metals, and shares.

The broker didn’t have any local regulatory status from the Estonian Financial Supervisory Advisory and affiliates on its website. 4XFX was also blacklisted in Estonia and Spain.

In January, Australia’s ASIC red-flagged the Berlin, Germany-based, multi-asset broker.

About FCA

FCA regulates the conduct of more than 59,000 businesses and is the prudential regulator for more than 18,000 of them. They aim to ensure relevant markets function well with each other.

The organization maintains honest, fair, and effective markets to promote the safety and soundness of the firms it regulates. They claim to keep confidence in the UK as a global financial hub.

Established on April 1, 2013, the organization took over the responsibility for the conduct and prudential regulation from the Financial Services Authority.

One of their approaches included the Approach to Authorization, which explains authorization as a tool to prevent harm. FCA also aims to achieve fair and just penalties against misconduct to ensure their rules and requirements are obeyed.

LEAVE A REPLY

Please enter your comment!
Please enter your name here