Hong Kong’s financial regulator, the Securities and Futures Commission (SFC), today issued an update to its Alert List featuring the names of businesses that are unlicensed in Hong Kong and which are believed to have targeted Hong Kong investors.
Trading Banks is the latest brokerage to make it onto the SFC’s website which reveals a growing list of firms that have been flagged by the watchdog for breaking its rules. The addition follows a further warning issued last month against TCA Financial which again was added as an unlicensed entity after providing inaccurate contact details on its website.
The firm under the spotlight is an international forex broker offering of a range of trading services including forex, metal trading and CFDs which is located at Gorg Borg Oliver St, Suite 4, Number 62/63, Morina Court St. Julians, Malta.
According to the regulator, the brokerage represents that it is a brand owned and operated by Grizzly Limited but uses a bank account in Hong Kong in the name of Unit Group (HK) Limited for settlement.
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Upon further investigation of this broker’s website, the smallprint also happens to state that TradingBanks and Grizzly Limited are not licensed or authorized by the MFSA to provide any investment or other financial services in or from Malta, which are required to be licensed or authorized under Maltese law.
This admission together with the SFC’s warning today highlights how susceptible investors may be when it comes to dealing with a financial entity that is not authorised by any jurisdiction, especially when engaging in what may appear to look like a professional trading platform.
Hong Kong’s financial watchdog plays an important role in informing investors about potential scams by drawing attention to illicit operations and unregulated entities that market participants should refrain from doing business with.
Its latest warning about Trading Banks is part of its efforts to clamp down on unlicensed businesses soliciting their services in Hong Kong.