The Financial Conduct Authority (FCA) of the UK has issued a warning against binary options providers AIG Options and CMC Options for running their operations in the country without being authorized by the regulator. Based on the statement, it is possible that the two brands are run by the same company.
The British financial watchdog states that these brands have been taking part in activities such as offering financial and investment oriented advice and other services without the mandatory registration. Consequently, they are in violation of British law. In addition, the company has chosen names similar to those of legitimate companies in order to induce trust and ease among its clients.
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Due to the unauthorized nature of these firms, the FCA is recommending that clients avoid signing up and investing their funds with these brokers. Customers who knowingly traded with unregistered online trading firms will not be covered by the Financial Ombudsman Service or Financial Services Compensation Scheme should something go wrong.
Last week, the FCA approved the foreign exchange and CFDs broker Exness Europe Limited’s United Kingdom subsidiary as a principal, which will give its business model a more comfortable space to develop in. The subsidiary firm will opt for a different business model, and will offer new leverage offers on accounts funded with less than $1000.
Additionally, the FCA released a warning against Capital Markets Banc, a forex and binary options trading firm. This company has been caught soliciting its services to clients without being issued a license for such an operation in the UK.