The British Columbia Securities Commission (BCSC), one of the thirteen provincial financial regulators in Canada, has added investment firm Cap Growth FX to its ever-growing Investment Caution List, according to a BCSC statement today.
The BCSC became aware of Cap Growth FX after finding that the firm had solicited a British Columbia (BC) resident and opened a trading account for him, without authorisation. The BCSC has therefore urged investors to use caution when dealing with this brand.
Cap Growth FX, operating online under the url www.capgrowthfx.com, offers clients a range financial services through opening and managing trading accounts.
Changing the Face of AML with Self Service AnalyticsGo to article >>
According to the BCSC’s statement, this firm is not registered to trade in or advise on securities or exchange contracts in BC and is one of many alerts issued by the watchdog which involve unauthorised soliciting or contact with retail investors in Canada by unlicensed brokers.
Getting back to the BCSC warning, after briefly explaining certain risks related to derivatives products, the provincial authority noted that while some trading activities are regulated, these represent only a portion of the market, while a large portion is illegally traded through unregulated online platforms.
The BCSC is the independent provincial government agency responsible for regulating securities trading in British Columbia through the administration of the Securities Act. The regulator website provides information, tools and resources for investors, including investor warnings about individuals and companies that appear to be engaging in unauthorized activities.
The warning follows a similar case highlighted by the BCSC last month in which the forex brokerage Stoxmarket was added to its list of companies not to do business with.