The Financial Conduct Authority (FCA) has issued an official warning on its website regarding a company operating under the brand name solidcfd.com.
The warning explains that the company has been offering financial services or products in the UK without any authorization from the FCA. While not all companies that are unauthorized are actually scam operations, it is important to be wary of such companies, since they are not supervised.
Moreover, from the actual warning that was issued, the FCA stated: “This firm is not authorised by us and is targeting people in the UK. Based upon information we hold, we believe it is carrying on regulated activities which require authorisation.”
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FCA Maintains Watchdog Role
As the UK’s regulatory watchdog, the FCA has been vigilant in its role of policing Britain’s financial industry, and assuring that unlawful activity is prevented.
In a similar situation earlier this month, the FCA warned of unlicensed brokerage XMarkets, adding that the company may be a scam. As a result of the unlicensed firm’s activities, the regulator decide to place XMarkets on its blacklist.
Another brokerage that was added to the FCA warning list last week is MaxCFD. The accusations here were the same in that the company had been providing financial services to UK citizens, without having any affiliation to an FCA licensed company or entity.
The result was placing them on the warning list in the hopes of helping the public avoid any interactions or conducting business with a firm whose operations are not monitored.
The binary options market was the recipient of heavy scrutiny from the regulatory body. The FCA was adamant about limiting brokers with questionable operations or intentions, following a statistical data report that showed the severity of losses incurred in the market. The report showed that binary options scams led to average daily losses of £87,410.