British Columbia Securities Commission (BCSC), one of the thirteen Canadian provincial financial regulators, has issued a warning to investors about Cyprus-based Pegase Capital Ltd, trading as binary options broker, Interactive Option.
The British Columbia (BC) based watchdog became aware that Interactive Option was soliciting residents of the Canadian province to invest in binary options. Although binary options brokers are not licensed to do business in Canada, it has not stopped some of the offshore companies soliciting traders with their services.
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This is not the first time that the company has been flagged. In February, 2016, the Cyprus Securities and Exchange Commission (CySEC) suspended the licence of Pegase Capital Ltd following several violations of Cyprus investment laws and putting clients’ investments at risk. The company was given one month to act in accordance with CySEC requirements but there has been no update on the situation since. Its website presently features a statement saying that its license has been suspended.
CySEC also imposed a fine of €300,000 on Pegase Capital Ltd in November, 2015 for not complying with its laws relating to the licensing and operation of investment companies.
The BCSC’s warning list contains individuals and companies that appear to be engaging in activities that may pose a risk to investors. The watchdog confirms that Pegase Capital Ltd, trading as Interactive Option, is not registered to trade in, or advise on, securities or exchange contracts in BC and urges investors to exercise caution when dealing with this firm.