The International Financial Services Commission of Belize (IFSC) today issued a warning against another binary option broker purporting to be registered in the country. The Belize watchdog warned that a company calling itself ‘YieldOptions’ is not licensed by IFSC or any other competent authority in the country to conduct any trading business, according to an official IFSC statement.
According to the Belize’s watchdog, all persons concerned should exercise extreme caution and take note, as the aforementioned entity is fraudulently claiming to hold a trading licence in financial and commodity-based derivative instruments and other securities licence issued by the Samoa International Financial Authority. YieldOptions, owned by HSBO Capital Ltd., claims to hold the Licence No. IFSC/60/241/TS/14 which carries its name and purports to be signed by Mr. Gian C. Gandhi, the former Director General of International Financial Services Commission of Belize.
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A brief review of the broker’s website reveals that YieldOptions lists its address at HSBO Capital LTD. Level 5, Development Bank of Samoa Building, Beach Rd., Apia, Samoa. The website design is very poor, even the regulatory information has been taken down after the warning, therefore an expert eye can easily discover the alleged scam. However, it’s not clear how many clients may be affected by the firm which has already been cited yesterday for forgery over its regulatory status.
Belize is known as an offshore destination for brokers that want to meet fewer and softer criteria and to comply with less strict rules and requirements than if they registered in other jurisdictions. However, the IFSC has recently made a number of key changes to its fee requirements, with the IFSC application fee soaring to $1000, doubling from just $500. The regulator also increased its annual license fee to $25,000 from $5,000, and the capital requirement for forex brokers to $500,000.