The UK’s Financial Conduct Authority (FCA) issued a statement today revealing that another fraudulent entity has been added to its warning list. This latest warning concerns Algo Capitals, a clone of an established FCA-registered firm known as Algo Capital Management Ltd, and follows a recent clone warning regarding another unregistered firm reported by Finance Magnates in November.
Algo Capital Management vs Algo Capitals
Algo Capital Management is an FCA-registered financial services provider based at 24 Old Bond Street, London, UK. The firm, which operates online via the website www.algocapital.com, is an investment management company catering to institutional investors worldwide who have an interest in tailored fund management products.
By contrast, the brokerage’s clone, Algo Capitals, is a forex and binary options brokerage which is based at Portland House, Bressenden Place, London, UK and operates via the website www.algocapitals.com.
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Algo Capital Management maintains no relation or affiliation with the clone group. The FCA has also confirmed that the authorised firm that the fraudsters are claiming to work for has no association with the clone firm Algo Capitals.
FCA Warns Against Dealing with Clones
The FCA has warned investors and market participants against dealing with Algo Capitals since the clone is not under the jurisdiction of any regulatory body.
This is one of many instances of a clone attempting to scam individuals through the deployment of illicit tactics and ambiguous details. In its statement, the FCA reminds investors that clones employ the tactic of adopting a legitimate company’s name when they cold call potential victims, and urges caution in the event they are contacted by anyone claiming to work for the firm in question.
The watchdog has also advised investors to ensure they only deal with financial firms that are authorised by checking the Financial Services Register.