The UK Financial Conduct Authority issued a warning on Friday against two entities – a forex brokerage firm has been falsely claiming registration and a clone that has been posing as being affiliated with regulated entities in Hong Kong.
All firms and individuals offering, promoting or selling financial services or products in the UK have to be authorized by the FCA.
The UK watchdog has blacklisted a forex and CFDs broker named HQ Broker, operating through https://www.hqbroker.com, which claims that it is offering a legal product. It claims to be governed by the FCA and Hong Kong’s Securities and Futures Commission (SFC).
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The City watchdog has also warned against New Power Gen Ltd t/a Strategy Markets, which operates as a CFD, Forex, and cryptocurrency brokerage. Reviewing the company’s website didn’t yield much valuable information regarding its operation, except for the usual claim of being a leading investment firm.
The watchdog warned that this brokerage firm may be a scam and added that it was flagged for operating and targeting UK citizens without a license. The FCA pointed out that the company is based out of an undisclosed jurisdiction while soliciting its clients using the website https://strategymarkets.co.uk.
The warning is another step in the FCA’s tireless efforts to crack down on unregulated firms posing as legitimate approved businesses with full force. The regulator has previously issued warnings against similar companies, urging the public to beware of firms working outside the law and without the proper necessary approvals and licenses.