ASIC has revoked 58 Australian finance services (AFS) licenses

58 Australian finance services (AFS) licensees, who were in breach of the law because they were also authorised representatives of other AFS licensees, have now had their authorisation revoked following an ASIC review.

According to section 916D of the Corporations Act 2001 (the Act), an AFS licensee cannot be the authorised representative of another AFS licensee, unless they are a general insurance underwriting agent or broker operating under a binder given by an insurer.

ASIC investigated 65 cases where AFS licence holders had also been appointed as authorised representatives by another AFS licensee. Of the 65 cases investigated, ASIC found that 58 were in breach of the law.

In circumstances where an authorisation has been granted to one AFS licensee by another, ASIC is concerned that licensees may not have appropriate compliance measures in place, resulting in potential risks to consumers.

ASIC expects AFS licensees to check  ASIC’s professional registers prior to granting an authorisation to new representatives to ensure that they do not authorise a person or entity that already holds an AFS licence. AFS licensees are advised to adopt this practice as part of their onboarding process. AFS licensees wanting to become authorised representatives must give up their licence or take necessary steps to ensure that they are not in breach of the law.

Spain’s regulator CNMV warns against MegaTradeFX

Spain’s financial markets and services regulator CNMV has issued a warning against MegaTradeFX. According to the public warning notice, MegaTradeFX, operated by Macro Projects Ltd. is not authorized to provide investment services or investment advice and auxiliary services, including foreign currency transactions in Spain.

The National Securities Market Commission (often abbreviated as CNMV) is the Spanish government agency responsible for the financial regulation of the securities markets in Spain. It is an independent agency that falls under the Ministry of Economy, Industry, and Competitiveness. The regulator maintains a register with investment companies that are authorized to operate in Spain.

MegaTradeFX is a forex broker, owned and operated by Macro Projects Ltd. The company is based in St. Vincent and the Grenadines, which means it is an offshore entity and there is a high risk for the customers when dealing with this firm. There is also another address mentioned on the website, and it is the Marshall Islands. Obviously, no matter which address is correct, it is still an offshore one.

The website mentions different contact numbers with British country code, and probably the company has been targeting residents of this country. Although, the company is not licensed in any of those countries, and there is no regulatory body that monitors its activity to ensure it sticks to best practices. Moreover, it was banned in the UK by its local regulator Financial Conduct Authority.

In order to operate legally, investment firms need a license by the local relevant authorities or the authorities of any other EU member state. We strongly advise traders to select among brokerages authorized by reputable regulators, such as EU ones (FCA, CySEC) or Australia’s ASIC. You can read our review on this broker here.

Italian regulator CONSOB warns against 4xpremium

Italy’s financial markets and services provider regulator CONSOB (Commissione Nazionale per le Società e la Borsa) has updated its list of forex brokers who are not licensed to operate in Italy with one new addition – 4xpremium. The broker was banned for illegally using identifying elements (company, brand, name or corporate name, headquarters, addresses, web and/or e-mail addresses, etc.) that are identical to those of companies actually authorised.

Commissione Nazionale per le Società e la Borsa (CONSOB; Italian Companies and Exchange Commission) is the government authority of Italy responsible for regulating the Italian securities market. This includes the regulation of the Italian stock exchange, the Borsa Italiana.

4xpremium offers trading with Forex and CFDs, including Indices, Commodities and Stocks. The company is owned and operated by Index Limited. 4xpremium doesn’t disclose any information about its location, contact details or, most importantly, its regulation. Also, mentioning Cyprus jurisdiction in the terms and conditions doesn’t mean the authorization from the Cyprus Securities and Exchange Commission (CySEC).

Although, our biggest concerns are the warning from several regulators which blacklisted 4xpremium for illegally use of identifying elements of companies actually authorised in the country. As the official CONSOB notice state, such companies are called “clone firms” and they not just use the names or addresses of the authorized entities, they may also refer to “licenses”, whether valid or expired, issued by supervisory authorities to different subjects. By so doing, these subjects present themselves to potential customers as being authorised, often offering highly profitable investments in an underhand way.

Moreover, the broker has also been banned by the UK’s Financial Conduct Authority as the owner-company Index Limited is a clone of the FCA-regulated Global Market Index Limited.

It is now clear that 4xpremium is way too suspicious to be dealt with. Trading with a licensed broker ensures you will not have issues withdrawing your investment. The most trustworthy brokers are those registered with such regulators as FCA in the United Kingdom and ASIC in Australia. You can read our review on this broker here.

Spain’s CNMV warns of unregulated forex broker UproFX

Spain’s financial markets regulator, CNMV, has warned of Forex broker UproFx. According to the official notice on CNMV’s website, this entity is not registered in the corresponding registry of the commission and, therefore, are not authorized to provide investment services.

The National Securities Market Commission (often abbreviated as CNMV) is the Spanish government agency responsible for the financial regulation of the securities markets in Spain. It is an independent agency that falls under the Ministry of Economy, Industry, and Competitiveness.

UproFX is a Forex and CFDs brokerage. According to the website, UproFx is owned by Yield Enterprise Currency Software OÜ (company number: 14484668), Tallinn, Estonia and operated from Riga, Latvia. The government of Estonia allows forex trading within the country for those brokers authorized by the local regulator Financial Supervision Authority. However, we didn’t find any mention of UproFX or  Yield Enterprise Currency Software OÜ in regulator’s register.

To add up, we have found numerous negative reviews from UproFX customers on the net. People state that they cannot get their money back and the company refuses to provide any kind of help.

When choosing a new Forex broker, it is very important to verify that they are in fact licensed for investors from your country of residence. Trading with a licensed broker ensures you will not have issues withdrawing your investment. The most trustworthy brokers are those registered with such regulators as FCA in the United Kingdom and ASIC in Australia. You can read our review on this broker here.

Spain’s CNMV warns against a forex broker WandaFx

Spain’s financial markets and services regulator CNMV issued a warning against WandaFx. According to the public warning notice, WandaFx, operated by Eper Holdings LTD., is not authorized to provide investment services or investment advice and auxiliary services, including foreign currency transactions in Spain.

The National Securities Market Commission (often abbreviated as CNMV) is the Spanish government agency responsible for the financial regulation of the securities markets in Spain. It is an independent agency that falls under the Ministry of Economy, Industry and Competitiveness. The regulator maintains a register with investment companies that are authorized to operate in Spain.

WandaFx provides Forex, Crypto and CFD’s solutions to institutional and private investors. The company is owned and operated by Eper Holdings LTD with registered number 24673 IBC, based in St.Vincent and the Grenadines and Bonvita Partners OÜ with registered number 14443635, based in Estonia. However, we didn’t find any records of Bonvita Partners OÜ in the register of Estonian Financial Supervision Authority, which means the company is not regulated.

As to the offshore-based Eper Holdings LTD., we keep reminding that such offshore zones are famous for their loose legal regimes, tax-free and low-cost licenses. They are basically not licensed, nor supervised by any authority. Also, the company claims to be registered by the Financial Commission. Even though the FinaCom is a well-respected organization, it is a self-regulatory organization which cannot guarantee the safety of the trading environment and does not regulate the daily operations of the company, therefore can’t provide necessary protection to the client.

Generally, we always advise traders to avoid dealing with unregulated forex brokers, as most of them are involved in investment scams. There are a number of properly licensed brokers to choose from, like the ones regulated by the FCA or the ASIC. You can read our review on this broker here.

New Zealand FMA warns against UFX broker

The Financial Markets Authority (FMA) of New Zealand, the government agency responsible for financial regulation, have issued a warning against UFX broker. The regulator believes the registration and regulation information claimed on the website is false and misleading, and that UFX Global Limited could be involved in a scam.

The Financial Markets Authority (FMA) plays a critical role in regulating capital markets and financial services in New Zealand. It is the New Zealand government agency responsible for enforcing securities, financial reporting, and company law as they apply to financial services and securities markets.

UFX is a Forex and CFDs broker, owned and operated by UFX Global Limited. According to the website UFX Global Limited is a company incorporated in the Republic of Vanuatu, regulated by the Vanuatu Financial Services Commission under licence number 14581. Payment Services provided by the company UNITED GLOBAL VENTURES LP, Edinburgh, United Kingdom. They also claim to be licensed and regulated in the EU and adhere to strict regulatory standards. However, the information is false and the broker is not authorized in any EU country as well as in New Zealand.

According to the regulator’s statement, www.ufx.com is based overseas with no presence in New Zealand and does not appear to be subject to regulation by an overseas regulator. The company appears to be targeting New Zealand residents through online advertising. It is not a registered financial service provider in New Zealand and not licensed to issue derivatives in New Zealand.

We always advise traders to avoid dealing with unregulated offshore-based forex brokers like UFX, as most of them are involved in investment scams. There are a number of properly licensed brokers to choose from, like the ones regulated by the Financial Conduct Authority or the Australian Securities and Investment Commission. You can read our review on this broker here.

Austria’s FMA has issued a warning against CFDs100

The Austrian regulator FMA (Financial Market Authority) has issued a warning against Forex and CFD broker CFDs100. The brokerage firm was offering financial products and services to Austrian residents without being authorized in the country.

The Austrian Financial Market Authority (FMA) is an independent, autonomous and integrated authority for the Austrian financial market. The Austrian FMA is responsible for: contributing to the stability of Austria as a financial market; reinforcing confidence in the ability of the Austrian financial market to function; protecting investors, creditors and consumers.

According to the website, CFDs100 is a world-renowned financial services provider offering a range of investment products, including CFDs (contracts for difference), FX and Cryptocurrencies. The company is owned and operated by CCLR Solutions Limited and claims to be located in Tallinn, Estonia. However, the company is not licensed to provide its services in the country and it is proved with a warning from Estonian regulator Financial Supervision Authority.

In fact, there is actually a big chance that CFDs100 is just another offshore scam company, as we have found mentions of the Vanuatu jurisdiction in the terms and conditions from the website. Vanuatu is a popular offshore zone for the forex brokers as they can be easily incorporated under the countries law.

If you still have plans to invest with CFDs100, check the reviews online. Most of thoe reviews are negative, where people complain about withdrawal issues and losing huge amounts of money with this broker.

When choosing a new Forex broker, it is very important to verify that they are in fact licensed for investors from your country of residence. Trading with a licensed broker ensures you will not have issues withdrawing your investment. The most trustworthy brokers are those registered with such regulators as FCA in United Kingdom and ASIC in Australia. You can read our review on this broker here.

 

CfdPremium end up on CONSOB’s warning list

Unregulated forex broker CFDPremium has been one of the latest additions to the warning list of the Commissione Nazionale per le Societa e la Borsa (CONSOB). The Italian financial regulator also ordered the broker to cease its illegal operations in the country.

Commissione Nazionale per le Società e la Borsa (CONSOB; Italian Companies and Exchange Commission) is the government authority of Italy responsible for regulating the Italian securities market. This includes the regulation of the Italian stock exchange, the Borsa Italiana.

CFDpremium is an online Forex broker, focusing on Commodity, Index and Forex trading. The company is owned and operated by Silver Wolf Ltd. Silver Wolf Ltd. is registered on the Marshall Islands and known for operating some other brands, such as FXtrade777, TradeBNP and MarketGBP. It is also known for multiple warnings received from several regulator, including UK’s FCA, Spain’s CNMV, Danish FSA and some others. Moreover, CFDPremium itself has also been blacklisted by Spanish CNMV in January 2019.

The broker claims to be located in London, UK. However, we have checked the regulator’s register and haven’t found any mentions of CFDPremium. The website offers different language options, where all the languages are European, which means the firm has been mainly targeting EU residents.

All these facts are more than enough to stay away from the CFDPremium. In Italy, as in any other EU Member State, financial intermediaries, including forex brokers, are not allowed to operate without proper authorization either from the local authorities or from any financial regulator of another EU country. You can read our review on this broker here.

NFA Fines East West Global $750,000 for Overcharging Clients

On 10th of April, a US-registered asset manager East West Global agreed to pay the National Futures Organization a $750,000 fine to settle allegations that it charged excessive fees from investors in its commodity pool.

The National Futures Association (NFA) is the self-regulatory organization for the U.S. derivatives industry, including on-exchange traded futures, retail off-exchange foreign currency (forex) and OTC derivatives (swaps). NFA is headquartered in Chicago and maintains an office in New York City. NFA does not operate any markets and is not a trade association.

According to the filing, the company breached fiduciary duty and failed to sufficiently reveal the high fees and poor overall performance of the pools which was material information.

The NFA launched its suit against East West Global on August 2018, alleging the commodity trading operator allowed to publish these disclosures although the documents were materially inaccurate and likely to deceive pool participants.

East West Advisors, LLC provides investment advisory services. The Company offers risk management, investment strategies, consulting, financial planning, and other financial services. East West Advisors serves clients in the United States.

Austria’s FMA has issued a warning against TradeToro broker

Austria’s financial markets and services providers regulator FMA warned that the Forex and CFD broker TradeToro is not licensed to offer its services in Austria. Therefore the acceptance of funds from other parties on a commercial basis for management purposes or as deposits is not allowed.

The Austrian Financial Market Authority (FMA) is an independent, autonomous and integrated authority for the Austrian financial market. The Austrian FMA is responsible for: contributing to the stability of Austria as a financial market; reinforcing confidence in the ability of the Austrian financial market to function; protecting investors, creditors and consumers.

TradeToro offers over 120 trading instruments including currency pairs, commodities, CFDs and indices. The company is owned and operated by Ivory Group Limited, based in Dominica, which means it is an offshore entity and there is a high risk for the customers when dealing with this firm. We have found out that previously the company claimed to be registered in St. Vincent and the Grenadines. However, the information has been changed not long ago.

In addition, there are a lot of complaints can be found on the net about negative experiences of the customers. People state that they’ve been losing huge amount of money with this broker, when managers were still promising profits and asking to invest more. 

When choosing a new Forex broker, it is very important to verify that they are in fact licensed for investors from your country of residence. Trading with a licensed broker ensures you will not have issues withdrawing your investment. The most trustworthy brokers are those registered with such regulators as FCA in United Kingdom and ASIC in Australia. You can read our review on this broker here.