Danish FSA Issues Warning Against 2 Unauthorized Brokers

The Danish Financial Supervisory Authority (FSA), which acts as the main financial services regulatory body in the country, has issued an official warning on its website, against two separate financial firms.

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The warnings are listed separately on the regulator’s website (www.finanstilsynet.dk), and specifies that each of the companies has been offering and providing financial services within Denmark without authorization.

The first warning is addressed against UB4TRADE, while the second mentions GCC Investing, as the two companies are currently not under the supervision of the Danish FSA, and are therefore not acting in accordance with the Danish Financial Business Act in Denmark.

Without proper authorization, there is no way for regulators to protect investors from fraudulent activity, due to a lack of monitoring by any governing body to ensure that proper practices are being adhered to by the companies.

The warnings each proceed to avoid conducting business or investing with either of the aforementioned unauthorized entities, and to refrain from transferring funds to any accounts associated with them. The warnings clearly are meant to protect the public from unlawful financial activity.

In a survey recently conducted by Finance Magnates, in which almost 700 traders were questioned about the importance of regulation for any company providing financial services, a lopsided 87.26% of participants said that they would not trade through any broker that did not possess regulation of any kind.

The high number illustrates that most traders (according to the survey) are aware of the importance of regulation to the safety of their funds, and to the assurance of proper and lawful trading practices. Not only can unregulated firms blatantly steal funds from clients, others might participate in price manipulation and other methods of assuring losses by clients, particularly when the broker is a market maker.

The Danish regulator has been active in issuing warnings and taking action against unauthorized or fraudulent firms in the financial industry. Back around the time of the CHF currency crisis, the regulatory watchdog reprimanded Saxo Bank over its handling of the SNB crisis.

Saxo Bank later won a dispute in the CHF case in a Danish commercial court, and was cleared by a third Danish authority of any wrongdoing related to the CHF resettlement.

Generally, having a dependable and active regulator can go a long way toward protecting investor funds, and having a place to turn in the even of wrongdoing toward investors.

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