The Financial Conduct Authority (FCA), the UK financial regulator, has issued a warning against a clone company which is impersonating multi-asset broker Active Funds ICAV in an attempt to lure unsuspecting clients to its Venus flytrap.
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The FCA has caught the clone soliciting and providing UK-based clients with financial services, despite its lack of authorization from the British regulatory body. Not only has the company never received the green light, but it has blatantly copied the name and address of the original, licensed online trading firm without alterations. The FCA warns that this measure is taken in order to create a false sense of security among the scammers’ target market. This course of action also helps the clone throw off the local regulatory authority.
Given that the copycat broker has already stolen the identity of another company and has operated while unauthorized to do so in the United Kingdom, the FCA warns that the firm might be a scam. The British regulator strongly advises against dealing with this company in any way, including opening an account or trading with it. The FCA further warns that if a trader chooses to disregard the warning and signs up with the untrustworthy company, he or she will not be eligible for compensation from the relevant authorities.
A few weeks ago, the British regulatory body issued a similar warning regarding the clone of Tilney Fund Managers Limited.