Hong Kong’s financial regulator, the Securities and Futures Commission (SFC), has issued an update to its Alert List which includes the names of businesses that are unlicensed in Hong Kong and which have been caught targeting Hong Kong investors.
Option500 is the latest binary options provider to come under fire by the regulator for not having a license, adding to the growing list of brokers included by the SFC.
The latest warning comes after several binary options firms recently hit the headlines with other jurisdictions, and follows a similar warning issued by the SFC earlier this month against unlicensed brokerage CW Associates which was added as an unlicensed entity after providing inaccurate contact details on its website.
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Option500 which offers investors the opportunity to trade a portfolio of assets including social trading, operates online via www.option500.com and is located at Blue Square, 272 Bath St, Glasgow G2 4JR, UK.
The SFC also warns in its statement that unlicensed entities often use names similar to legitimate companies to confuse investors, and while a firm’s website may reveal what appears to be a legitimate financial services outfit, ambiguities relating to the firm’s address and bank account details often raise concerns, prompting the SFC to take action.
Hong Kong’s financial watchdog plays a key role in informing investors about potential scams by drawing attention to illicit operations and unregulated entities that market participants should refrain from doing business with.
Its latest warning against Option500 is part of its efforts to target unlicensed businesses soliciting their services in Hong Kong.