The Manitoba Securities Commission (MSC), a Canadian provincial regulator, has warned the public against investing with a new FX brand which appears to be running unauthorized forex and binary options services, according to a regulatory statement.
The latest addition to the MSC’s warning list is a multi-asset broker called FSM Smart Ltd. The company was blacklisted by the MSC as they are not registered in Manitoba to engage in the business of trading or advising anyone with respect to investing in securities. The brand is also not registered to sell securities in Manitoba, or anywhere else in Canada, and have therefore failed to comply with provincial securities laws.
FSM Smart, operating online under the URL http://www.fsmsmart.com, offers investors several trading assets including securities, derivatives, cryptocurrencies, precious metals, and other commodities and shares. The broker also offers managed accounts which the Manitoban watchdog says complainants were told they would make up to 20 percent return on investment per week. The website, however, avoids making any guarantees on profit.
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A senior investigator with the MSC explains that the regulator received complaints from Manitobans targeted by FSM Smart, and his investigation turned up numerous red flags and inconsistencies. They also claim they’ve been in business for over a decade, but some investigative work on the regulator’s side suggests they’ve been around less than one year.
He added: “They’re not registered anywhere in Canada; they’re offering to trade in binary options, which are illegal in Canada; and they’re suggesting unrealistically high investment returns—not to mention questions surrounding their actual location.”
In its capacity as one of Canada’s provincial regulators, the MSC seeks to protect investors while promoting fair and efficient capital markets throughout the province. 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.