The Financial Services Commission (FSC) of Mauritius has recently alerted the trading community to the illegal activities of VTB Trade. This brokerage, which gives London as the location of its headquarters, has been making false claims of being regulated by the FSC.
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The broker has also falsely stated that it has a forex trading license “pursuant to Section 14 of the Financial Services Act 2007 and the Financial Services (Consolidated Licensing and Fees) Rules 2008”. In response, the FSC has clarified that it has not authorized the online trading company at any point in time. The Mauritian watchdog has advised the public to be cautious in the event of an encounter with the entity.
Not a First for Forged Licenses
Brokers forging licenses and claiming authorization by regulators without ever receiving it is nothing new. There have been several instances of regulators like the FSC issuing warnings against such companies in order to prevent scam operations as much as possible. There does not seem to be an appropriate solution, as there have been more than a few instances of certain brokers making such claims before.
Two weeks ago, Finance Magnates reported on the IFSC from Belize issuing a similar warning against the broker Fixed Star lnlvestment Inc, which is operating under a forged license. A month ago, the IFSC alerted the public regarding two more companies, Club Fast Coin and TRADEEX LTD, that were also offering online trading services to traders under fake licenses.