Not a week passes by without the voice of a European Union- based regulator resonating against unauthorized providers of binary options services. The Italian Commissione Nazionale per le Società e la Borsa (CONSOB) has added another warning to the growing list of regulatory announcements related to binary options trading.
The entity which claims to be named City Equities, under the website www.cteqs.com, also states that it is regulated by the U.K. Financial Conduct Authority. Looking through the website of the U.K. regulator, Finance Magnates’ reporters found out that the regulated company was indeed named City Equities Limited, however its registered website in the regulatory register was www.cityequities.com.
The list of warnings against binary options brokers continues growing rapidly
The physical addresses listed on both websites are also completely different. All said, the authorized company’s website is not responsive, which made it an easy target for the cloning company.
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Another firm which CONSOL listed as fraudulent on Monday is the entity NTD Invest Corp Ltd, operating from the domain www.livetrader.eu. According to the Italian financial industry watchdog, the company is not allowed to provide investment services within its jurisdiction.
The list of warnings against binary options brokers continues growing rapidly. Coupled with aggressive sales tactics, in which people are being convinced that they will make money, the growing list of warnings risk the cause of long-term damage to the industry.
Some regulators are clearly interested in what actually happens on the binary options market, with the French authorities ringing the alarm bell loudly. In a recent study, representatives of the French authorities have actually established that a number of CySEC regulated entities are very hard to work with.
The findings of the study made by the French regulator Autorité des marchés financiers (AMF) found that clients were unable to withdraw their funds from several Cyprus regulated outfits.
If a regulated entity doesn’t honor client withdrawal requests, the credibility of its status is on the line, which ultimately is bad for the whole industry regardless of whether it’s regulated or not.