Britain’s financial regulator has continued its ongoing efforts to warn the general public against fraudulent and unauthorized entities. The City watchdog today warned against a provider of online trading products and PAMM accounts called Accent Markets Group Inc.
The PAMM technology, or Percent Allocation Management Module, has been widely used by traders in the forex and mainstream markets, though it was relatively rare to find managed accounts services available to users of Bitcoin and its likes. Accent Markets, which also operates under the brand AccentForex, offers its services across many asset classes including currencies, commodities, and cryptocurrencies.
Britain’s Financial Conduct Authority, or FCA, keeps a closer eye on firms selling high-risk and speculative investments to retail clients following recent actions by its European peer to supervise sales of contracts for difference (CFDs).
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Measures to restrict the marketing CFDs to retail clients, which mainly applies to regulated providers, were put forward by the European Securities and Markets Authority (ESMA) back in 2018.
The FCA was also 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.
Most recently, the FCA has warned investors are turning to cryptocurrencies to “get rich quick” despite not understanding what they are purchasing. Many of those interviewed perceived crypto assets as a shortcut to easy money and wealth while they overestimated their knowledge of virtual asset class. For example, many crypto enthusiasts said they wish to buy a whole Bitcoin, not realizing they could buy just part of one.
Earlier in January, the Financial Conduct Authority also highlighted its concerns over financial promotions that falsely implied that all of a firm’s activities were regulated by the FCA or other regulators, when in fact they were not.