The Ontario Securities Commission (OSC), one of the thirteen provincial financial regulators in Canada, has just updated its punitive measures against Zulutoys Limited and its subsidiary RBOptions, a binary options broker domiciled in Canada but not authorised to render financial services in the country, according to a recent OSC statement.
The regulatory action comes more than two years after the OSC’s decision to add both entities to its list of companies not to do business with, as Finance Magnates reported earlier in 2014.
The staff of Zulutoys and RBOptions appeared before the commission and made submissions including a consent to the regulator’s provision, which reciprocates the FCAA order.
FBS Receives Best Forex Broker Europe 2019 Award by The European MagazineGo to article >>
As such, the OSC has decided that Zulutoys and RBOptions shall cease trading in any securities or derivatives permanently and both providers will be prohibited from the acquisition of any securities. Moreover, any exemptions contained in Ontario securities law will not apply to Zulutoys and RBOptions permanently, pursuant to paragraph 3 of subsection 127(1) of the Act.
RBOptions is a Canadian broker with a history of raising the hackles of financial regulators. Three Canadian provincial watchdogs have warned against the binary broker in the last two years. In January 2014, the British Columbia Securities Commission (BCSC) put out an investor alert about RBOptions, and in March of the same year Ontario Securities Commission’s (OCS) followed suit. Saskatchewan’s regulator also followed other provincial authorities and warned about the brand in August 2015.
According to the broker’s website, RBOptions is owned by Zulutoys Limited in the Marshall Islands and the clearing services with respect to the website and the company are provided by RB Secured Processing LTD, a UK company located at NWMS Center, 31 Southampton Row, London WC1B 5HJ.
Apparently, they eventually changed their headquarters address to the Marshall Islands after Canadian regulators cracked down, but who can confirm? Virtual office addresses can be bought over the internet everywhere.
RBOptions attracted the attention of many Canadian authorities after the company proudly released a press release back in September 2014 stating that it is the only binary options brokerage operating from within Canada, although it does not claim on its website that it is regulated.