In a matter of 10 minutes, the Financial Conduct Authority (FCA) has published two press releases, back to back, which warn over two CFDs brands that had contravened UK laws pertaining to financial markets.
The City watchdog today red-flagged two providers of online trading products called Platinum CFD and STI-Global.
STI-Global is targeting UK investors offering a full range of offshore investment services, including FX trading services. Still, the City watchdog stressed the registration claims on its website are fake, and the firm is not authorized to do business in the UK. The company claims to be founded in 2011, headquartered in London, with international offices in Hong Kong. Sti Global falsely states on its website that its operations are authorized and regulated by the UK’s Financial Conduct Authority (FCA).
Pure Markets' CEO Talks Business Model, 2020 OutlookGo to article >>
In turn, the second broker is operated by Platinum Global Group Ltd., a limited liability company incorporated in St. Vincent and the Grenadines. Although this brand didn’t claim any regulatory status in the UK, the FCA said it targets Britons with promoting complex and overly risky trading instruments.
FCA warns not to use products similar to CFDs
The UK’s regulatory watchdog appears determined to protect consumers not only from fraud but also from losing small fortunes to regulated brokers that may offer ‘products causing similar harms.’
The FCA was concerned that firms might consider getting around ESMA’s measures through their overseas brands or by selling other similarly complex or highly-leveraged products. The City watchdog said, in common with other European regulators, it was aware that other products could create the same kinds of risks to consumers as CFDs.
The FCA has stepped up its game in the past year, first by following the lead of the European regulator ESMA in 2018 when it issued measures to restrict the marketing CFDs to retail clients, which mainly applied to regulated providers. The final step was taken in July after making ESMA’s temporary intervention measures permanent, but with some differences, such as applying them to a wider range of products.