FCA Continues Crackdown on Unregulated CFDs Brokers
- The City watchdog today red-flagged two providers of online trading products called Platinum CFD and STI-Global.
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.
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).
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 ESMA European Securities and Markets Authority (ESMA) is an independent Authority of the European Union that is responsible for the safety, security, and stability of the European Unions’ financial system and is charged with protecting the public. The European supervisory authority for the securities sector, ESMA was established on 1 January 2011. The European Securities and Markets Authority is an independent EU authority based in Paris. It aims to contribute to the effectiveness and stability of t European Securities and Markets Authority (ESMA) is an independent Authority of the European Union that is responsible for the safety, security, and stability of the European Unions’ financial system and is charged with protecting the public. The European supervisory authority for the securities sector, ESMA was established on 1 January 2011. The European Securities and Markets Authority is an independent EU authority based in Paris. It aims to contribute to the effectiveness and stability of t Read this Term’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.
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.
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).
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 ESMA European Securities and Markets Authority (ESMA) is an independent Authority of the European Union that is responsible for the safety, security, and stability of the European Unions’ financial system and is charged with protecting the public. The European supervisory authority for the securities sector, ESMA was established on 1 January 2011. The European Securities and Markets Authority is an independent EU authority based in Paris. It aims to contribute to the effectiveness and stability of t European Securities and Markets Authority (ESMA) is an independent Authority of the European Union that is responsible for the safety, security, and stability of the European Unions’ financial system and is charged with protecting the public. The European supervisory authority for the securities sector, ESMA was established on 1 January 2011. The European Securities and Markets Authority is an independent EU authority based in Paris. It aims to contribute to the effectiveness and stability of t Read this Term’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.