The Australian Securities and Investments Commission (ASIC) has issued a warning involving several online trading and wealth management companies. The regulatory authority strongly advises against dealing with these entities, as they are not authorized to operate in Australia.
The unlicensed companies are: 72Option, Spencer Capital Partners, Eduard Steinbach PLC, Royal State Global Financial Solutions, Wealth Management Group Ltd, a London Capital Group clone company (https://londoncgroup.com/), BBB Markets, Abridge Enterprises, IvoryOption, and Standard Fidelity Ltd.
The Australian financial watchdog alleges that these firms have been contacting traders in Australia and offering finance related services despite their not being licensed. It should be noted that the London Capital Group in question is not the original, regulated firm but a clone attempting to fool clients.
Due to these companies not having received either an Australian Credit license nor an Australian Financial Services (AFS) license, which are both issued by ASIC, the regulator expressed its concern that they might be involved in or running scam operations.
For some of these online trading companies, this is not the first time they have been warned against by the Australian regulatory body. Both the London Capital Group clone and 72Option starred in previous warnings from the regulator only a few weeks ago. ASIC had strongly advised against opening and funding accounts or trading with these two entities in its original warnings, but it is possible that this did not deter the firms from operating.