Belgium’s Financial Services and Markets Authority (FSMA) has issued its latest regulatory warning to the public. The announcement involves the unauthorized activities of International Markets Live LTD, which has been attempting to solicit FX and contracts-for-difference (CFDs) services to domestic individuals.
Belgium has been one of the more stringent countries regarding FX and CFDs offering – since 2016 the country has effectively curtailed this type of investment offering, which has not stopped brokers or companies from pursuing Belgian clients. Of note, the regulatory edict also forbids companies from giving clients a reward for bringing in new clients or for recommending these types of products.
Subsequently, the FSMA’s warning against International Markets Live LTD is the latest example of a company attempting to circumvent these regulations. The group, operating from the website www.imarketslive.com, has been offering Belgian consumers tools and training that are supposed to help them trade in forex products and CFDs.
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However, these offerings have been mainly targeting younger individuals, many of whom are poorly educated about the risks concerning these types of instruments. Many brokers and regulators have routinely pointed to a lack of education as a paramount issue in the retail space. Their consequent handling of high leverage or risk products in recent years has underscored this trend.
In the case of International Markets Live however, the group had been enticing its members with a number of advantages and compensation, thereby soliciting new members to recruit. By and large this is indicative of a pyramid scheme, with more details of this type of fraud being explicitly outlined in full on the FSMA’s website.
Such scams are highly dangerous and should be avoided by any individuals, or would-be investors. International Markets Live is no stranger to Europe, having already drawn regulatory scrutiny in two other countries.
The group has been the subject of multiple warnings by the French supervisory authority (AMF) and by the Spanish supervisory authority (CNMV). With the company now shifting its focus to Belgium, the FSMA has taken action. Investors are urged to always consult the FSMA’s website for authorized service providers’ status.
It is also important to note the public can contact the FSMA in the case of any queries. Offers of unrealistic returns, or requests to transfer funds to a country with no connection with the financial group, should serve as red flags.