The UK’s Financial Conduct Authority (FCA) issued a statement today warning the public against trading with Royal Capital Pro (RCP). Today’s release states that the FCA believes RCP is providing services that require the FCA’s authorisation.
The FCA noted that nearly all financial service providers operating in the UK require its authorisation. It added that many firms operating without their approval often knowingly run businesses designed to scam investors.
Despite its glossy website, RCP provides very few details as to who runs their business. Although the company claims to have 16 branches around the world, no details as to who holds executive roles with the firm exist on their website, nor are any founders or other employees listed.
Company listings in the UK also fail to provide any information as to who runs the company. Even RCP’s barren LinkedIn page only lists one employee – a marketer based in Romania.
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Empty offices in the UK, scammers in Estonia
RCP provides two UK addresses on its website, but a quick Google search reveals it is unlikely employees are present at either office. Both the Cardiff and Glasgow addresses listed provide ‘virtual office’ services where companies can register their businesses without having a physical presence there.
This is not necessarily indicative of any wrongdoing on RCP’s part. It does strongly suggest the company is trying to mislead users by making them think they have a UK base of operations.
That contention is supported by the fact that the firm hides its only other business address – in Estonia. The address matches that of S2Trade and Glenmore Investments, both unregulated brokers that have been accused of being investment scams. It is not implausible that RCP is operated by the same people who run these two firms.
Given the FCA’s warning and the prior history of companies working from RCP’s Estonian address, it would be wise to refrain from trading with them. Many in the financial services industry may not love regulators but incidents such as this show they can provide an important public service.