The United Kingdom’s Financial Conduct Authority (FCA) today shed light on an unregulated FX firm representing itself as BECFD, which has come under scrutiny by the watchdog for offering a variety of currency trading services without the required authorisation.
The watchdog warned that this firm has no association whatsoever with any FCA-licensed entity and added that it was flagged for operating and targeting UK citizens without a license. The FCA pointed out that the company is based out of an undisclosed jurisdiction while soliciting its clients using the website www.becfd.com.
The FCA has also added a new binary options brokerage to its already extensive blacklist. According to the watchdog, the online trading firm had been soliciting clients without being licensed to carry out such activities. The latest addition is the brand SW1 Options.
The denouncements follow a suite of similar blacklistings over the last few months. Under the guidelines, companies offering trading in derivatives to UK investors require licensing and oversight from the City watchdog. Accordingly, the financial watchdog has been cracking down on unregulated and unauthorised firms, surveying the trading environment to ensure such firms are not soliciting or marketing products to its residents.
The FCA’s alerts, however, are provided as an early warning service to investors, but not as a substitute for clients doing their own due diligence on the entity in question.
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