The Kanto Local Finance Bureau of Japan’s Ministry of Finance (MoF) has recently alerted local traders regarding an unauthorized brokerage which operates under the name At.Dear.
Register now to the London Summit 2017, Europe’s largest gathering of top-tier retail brokers and institutional FX investors
According to the regulator’s warning, At.Dear, an online stocks trading company, was noticed when a vendor had requested the submission of a document classified as a Money Deposit Certificate from clients. The approval would have been followed by the vendor offering clients financial services such as wealth management involving stocks.
The Japanese Financial Instruments and Exchange Law states that brokerages must be registered with the local regulatory authority before they begin approaching potential clients. Solicitation without the proper license places the company in breach of the law.
Ready to kick-off your Trading Game with Manchester United?Go to article >>
The warning then goes on to say that registration with the MoF does not guarantee that brokers listed on its website are in fact trustworthy. The Japanese financial watchdog strongly advises caution when dealing with a brokerage regardless of its regulatory status.
In addition, the regulator notes that the elderly are commonly victimized by unlicensed brokerages and scam operations. Regardless of the clients’ age group, traders must be alert, and only sign up with an online trading company once they first fully understand how the transaction is about to unfold.
Nearly six months ago, MoF issued a warning against Infin Markets Limited, which is a broker regulated by none other than the Cyprus Securities and Exchange Commission (CySEC). The online trading company was caught red handed when it operated in Japan without registering first.