The Financial Conduct Authority (FCA) on Wednesday added two financial firms to its online watchlist today. The British regulator has flagged 365 Binary Option as an unauthorized broker. It has also warned against Capital Finance Group Limited, a clone of FCA Appointed Representative Introducer firm.
According to the warning, 365 Binary Option is owned by Oproserv Ltd. The broker has come up on the watchdog’s radar for promoting or selling financial services or products in the United Kingdom without authorization. As a result, the FCA has flagged the firm as suspicious and has identified it could be a scam.
365 Binary Option claims to offer forex trading, including currencies, shares, indexes, and commodities, on its online platform. The broker operates through two websites: https://www.365binaryoption.com/ and www.365-Fx.com. On its website, the firm claims to be based at 78 York Street, London, England, W1H 1DP, Old Brompton Road, South Kensington, London SW7 3DQ.
Why Ethereum Needs Layer 2 Solutions More Than EverGo to article >>
The FCA urges investors to be careful when dealing with 365 Binary Option. The regulator also reminds potential customers that should things go awry, they will not be covered by the Financial Ombudsman Service or Financial Services Compensation Scheme (FSCS) as it is not authorized by the watchdog.
Clone Firm Capital Finance Group Limited
The UK regulator has also issued a warning against Capital Finance Group Limited, which is pretending to be related to an FCA Appointed Representative Introducer firm of the same name. However, the watchdog has warned that there is no association between the two entities.
Fraudsters from the clone firm are claiming to work for the legitimate firm Capital Finance Group Ltd. In this instance, the name is the same. However, investors can differentiate the illegitimate company based on its address, which is 82 Pall Mall, London SW1Y 5HS; Rue Guillaume-Tell 6, Geneva 1201, Switzerland.
The legitimate firm is located at 26 Cadogan Square, London SW1X 0JP. Its firm reference number with the FCA is 669518. Should anyone be contacted by the clone firm or any other suspected scam, the regulator urges investors to get in touch and report the incident.