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 banking giant Morgan Stanley.
Morgan Stanley & Co Ltd is an FCA-registered financial services provider, which is based in London. The group’s clone, Morgan Consultancy Group, is attempting to mislead investors into thinking that it is offering a legal product by using similar details. The genuine Morgan Stanley has no relationship or affiliation with the clone.
The UK watchdog has also blacklisted a forex broker named Giant Global, operating through www.giantglobalfx.com, which claims that it is offering a legal product. It claims to be governed by the FCA and the National Futures Association (NFA), the self-regulatory body of the United States.
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Finance Magnates found that the associate website for the fraudulent firm has been suspended. The exact details of this company’s operations are therefore unavailable; however, it is clear from a few cached pages of its website that its operators were attempting to deceive investors into believing that it was a multi-regulated provider.
Today’s announcement is the latest in the a series of warnings from the FCA about clones and unregulated firms posing as legitimate approved businesses in order to con UK consumers into making payments for investment services.
The FCA reminded UK investors that clones employ the tactic of adopting a legitimate company’s name when they cold call potential victims. It urges them to be wary if they get contacted by anyone claiming to work for such companies.