The Financial Conduct Authority (FCA), the UK financial regulator, has issued a warning regarding an online trading company allegedly trying to impersonate Blackrock Asset Management UK Limited. The original company is authorized to operate in the UK, which may suggest why it was targeted by a clone firm.
As the FCA usually comments in this type of regulatory notice, some scam companies might try to fool traders into thinking that a regulated and licensed company has approached them. They use similar names, office addresses, email addresses, and more. In this instance, the copycat company has opted for an almost identical name, having dropped only the words ‘UK Limited’ from the original company’s brand. In addition, the website address is also almost indistinguishable, ending with .ga instead of .com.
How Will Zero-Fee Investment Platforms Impact Traditional Stock Brokers?Go to article >>
The FCA has further alerted clients to the fact that clone companies may give false or a mixture of correct and incorrect information in order to confuse the individuals that they approach over the phone or via email.
The warning notice by the British financial watchdog stated that local traders should not work with unauthorized firms, and to be alert if any unsolicited phone call or emails reach them.
In April, Finance Magnates reported that Blackrock UK Limited and IG Group announced a collaboration in order to create the IG Smart Portfolios, where retail traders can trade without actively doing so themselves.
In May, Finance Magnates covered the FCA’s warning regarding a clone company falsely identifying itself as JW Global.