The Financial and Consumer Affairs Authority of Saskatchewan (FCAA) has issued a cease trade order against the binary brand RBOptions and its Marshal Islands operating firm Zulutoys Limited. The watchdog warns that the two entities are unauthorized to offer binary options to residents of the province.
Moreover, the FCAA says that Zulutoys and RBOptions appear to be engaging in the business of trading with and soliciting local investors without the needed registration, in violation of the provincial securities laws. While the order is temporary, the watchdog explains that it can be extended until new satisfactory information is provided by the entities.
The move by the Saskatchewan body follow similar warnings by other provincial authorities about the brand. In January 2014, the British Columbia Securities Commission (BCSC) put out an Investor Alert about RBOptions, and in March of the same year Ontario Securities Commission’s (OCS) followed suit.
ACY Securities Supports ASIC’s Product Intervention OrderGo to article >>
The structure of the Canadian regulatory framework is based on separate regulators operating in each of its 13 different provinces. The company released a press release back in September 2013 stating that it is the only binary options brokerage operating from within Canada – a move that has apparently attracted the attention of local authorities.
After reviewing the RBOptions website, it doesn’t appear that the company has regulatory registrations anywhere. No related regulated entity information was found in its terms and conditions of its customer account agreement. In some of its publications the broker presents this as a positive for traders as it is not tied down by cumbersome regulations.