FMA Warns Investors Against Binary Options Brokerage Option Giants

New Zealand’s watchdog has updated its warning list to include Option Giants after withholding clients funds.

The Financial Markets Authority (FMA), New Zealand’s financial watchdog, today updated its warning list to include Corporate Enterprises PTY Limited, trading as Option Giants, a binary options broker offering investors the opportunity to trade in a variety of assets including stocks, commodities, currencies and indices.

The inclusion of Option Giants in the FMA’s warning list follows last month’s addition of Titan Trade, another binary option brokerage that was flagged for advertising its services without a licence.

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Clients Funds Withheld

The firm operates online via two websites – http://www.optiongiants.com/ and www.ogmvp.info – the latter of which is inaccessible and is located at 68 Russell Street, Westport, 7825 New Zealand. Option Giants’ website also lists a UK address at 1 King Street London, UK which cannot be confirmed as legitimate.

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According to the FMA’s website,  Option Giants is categorised both as an ‘unregistered business’ and a ‘business to be wary of’ as businesses or individuals offering financial products or services in New Zealand must be registered on the Financial Service Providers Register (FSPR), and Option Giants is not.

Furthermore, the FMA has also noted that the Financial and Consumer Affairs Authority (Government of Saskatchewan) has issued a Notice of Application to Extend a Temporary Order in which Options Rider and Option One (Aust) PTY Ltd should cease trading in securities in Sasktachewan. This is because the director of Option One (Aust) Pty Limited also happens to be the director of Corporate Enterprises PTY Limited trading as Option Giants, about whom the FMA received reports of client funds being withheld.

For this reason, the FMA has recommended that potential investors do not invest money through this business.

FMA Warnings

The FMA’s updates are part of the watchdog’s attempts to clamp down on unregulated financial services activities where it believes investors may be at risk.

Businesses and individuals have the FMA enforce action against them for misconduct, for not responding or not providing a satisfactory response to a request for information, or for receiving a warning notice from the FMA.

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