The United Kingdom’s Financial Conduct Authority (FCA) today shed light on an unregulated firm representing itself as MaxCFD, which has been providing professional investment services to UK residents without regulatory permission.
The watchdog warned that this firm has no association whatsoever with any FCA-licensed entity and added that it was flagged for operating and targeting UK citizens without a license.
MaxCFD operates through www.maxcfd.com and has adopted a false address at 20-22 Wenlock Road, London, N1 7GU. The FCA warns that this is a typical move for a scam company to gain the trust of unsuspecting clients.
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If you are an investor, you should be aware that the Financial Ombudsman Service and the Financial Services Compensation Scheme are not available if you deal with an unauthorised company or individual, the FCA said in a statement.
The FCA has recently waged war on unregistered online trading firms and clone companies, and the number of brokers on its blacklist continues to grow.
Finance Magnates last reported on the FCA in January when the regulator won a protracted legal battle with a former JPMorgan trader caught up in the ‘London Whale’ controversy. The ex banker had argued that the watchdog didn’t take adequate steps to maintain his anonymity when it fined the Wall Street bank $195 million in 2013.
In a ruling that could prove important for other cases brought against the regulator, the Supreme Court said that the FCA adequately anonymized Julien Grout’s identity and had not provided information that would have made him identifiable to the general public. The judgement overturned previous rulings from a London tribunal.