The Securities and Futures Commission (SFC), Hong Kong’s paramount securities and financial markets regulator, has issued a warning on AAFX Trading Capital for suspicious activity, according to an SFC statement.
AAFX Trading Capital / AAFX Trading Company Ltd, which operates through AAFXTrading.com, was added to the SFC’s alert list on suspicion of being unlicensed or unregistered in Hong Kong. The company claims to be registered with the department of economic development of Hong Kong and lists its principal place of business at Square 8 Connaught Place Central, Hong Kong.
However, the SFC said that the unregulated firm is not located in the region although it may be using the details of a legitimate company to confuse investors. The regulator also said it uses a bank account in Hong Kong in the name of Yellow Sand International Ltd for settlement.
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According to AAFXTrading’s website, the company claims to operate as a global online trading broker specializing in stocks, commodities, CFDs and currencies. It also states that the firm is licensed and regulated with major financial commissions worldwide, including in Malaysia and Saint Vincent and the Grenadines.
Presently, the SFC’s comprehensive Alert List features the names of businesses that have come to the attention of the watchdog because they are unlicensed in Hong Kong and are believed to be, or to have been, targeting Hong Kong investors or claim to have an association with Hong Kong.