The Financial Markets Authority (FMA) of New Zealand has publicized an official warning on its website, alerting investors of conducting business with the binary options broker “GG Binary,” which has unlawfully offered this form of high-stakes trading to retail traders.
The financial watchdog today updated its warning list by blacklisting www.ggbinary.com, which claims to be regulated by the New Zealand financial regulator. The FMA added that GG Binary is listed on the Securities and Futures Commission of Hong Kong’s alert list as an unlicensed entity and not being located at the address mentioned on their website.
Based on this, the watchdog warns the public not to invest with this entity and be cautious of dealing with their solicitations.
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More on FMA authority
While many providers claim to be New Zealand-based, the FMA said it believed these companies were based overseas and providing false addresses, adding that it would look into taking further action if companies were actually based within the country.
The one-size-fits-all reasoning that the FMA gives is that these companies might be running scam operations, and so they have not received licenses to trade with clients. These brokers have also been found guilty of making unsolicited calls and sending out similar emails to locals regarding online trading, financial consultation, and credit without gaining the necessary approvals.
The FMA updates the public using warnings and alerts when it believes investors may be at risk. Businesses and individuals are named on this list if they are not registered to provide financial services in New Zealand, have had the FMA enforce action against them for misconduct, have either not responded or not offered a satisfactory response to a request for information, or have received a warning notice from the FMA.