The UK’s Financial Conduct Authority (FCA) today published a cautionary note about Littinvest / Explatinum Ltd, a Bulgarian broker that has been offering financial products in the United Kingdom without authorization.
Echoing previous warnings, the FCA also cautioned investors against dealing with financial firms that it has not authorized.
The watchdog added that the company was flagged for offering a variety of currency trading services including unlicensed foreign exchange products and contracts for differences. The FCA pointed out that Littinvest is based out of Sofia, Bulgaria while soliciting its clients using the website https://www.littinvest.com.
Although the FCA has censured Littinvest, the website still appears to be available to potential customers based in the United Kingdom.
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The FCA has been urging the public to be alert to the growing threat of unregulated firms targeting the UK residents. This plea comes as recent reports show investors have lost millions to fraudulent brokers while complaints to the FCA consumer helpline increased by more than 50 percent.
As Finance Magnates reported in January, the regulator warned of the rise of online investment fraud, including cryptocurrencies, after finding that investors had lost an average of 87,410 pounds ($118,397) per day, over the course of 2017.
The FCA also reminded investors to check its Financial Services Register, which lists firms that are authorized, as well as the Interim Permission Register, which shows firms that have not yet been approved.
The denouncements also follow a suite of similar blacklistings over the last few months. Under the guidelines, companies offering to trade in derivatives to UK investors require licensing and oversight from the FCA.