FCA, BaFin Issues Warning Against 27 Unregistered Companies

Story Highlights

• UK’s FCA warns against 27 companies offering financial services without authorization, including Global Sky Trading and EliteGlobalMiners
• Germany’s BaFin raises alarm over Trade211.com providing unauthorized financial services, cites ownership discrepancies
• Regulators emphasize the risks of dealing with unregistered firms, advise verifying companies through official registers

In a move to protect investors and maintain market integrity, the UK’s Financial Conduct Authority (FCA) has issued a stern warning against ten companies suspected of providing or promoting financial services without proper authorization. The companies named by the FCA include Global Sky Trading, Supermininfx.ltd, EliteGlobalMiners, FlowsGlobal, LegitimateFxPro.com, and Solid-Trades Unit, among others.

The regulator has cautioned that these entities operate through websites such as globalskytrading.com, supermininfx.ltd, eliteglobalminers.com, flowsglobal.net, legitimatefxpro.com, and solidtradesunit.live. Additionally, the Financial Conduct Authority has warned that some of these companies may use incorrect contact details, including postal addresses, telephone numbers, and email addresses, further raising suspicions about their legitimacy.

We’ve issued 27 new #FCAwarnings to unauthorised and clone firms in the past week. Protect yourself and find all recent warningshttps://t.co/YYWF5X202U pic.twitter.com/959hukNYTd

— Financial Conduct Authority (@TheFCA) May 10, 2024

BaFin Flags Trade211.com for Unauthorized Services

Across the channel, Germany’s financial watchdog, BaFin, has also sounded the alarm regarding Trade211.com, alleging that the platform is offering unauthorized financial services. BaFin’s investigation has uncovered concerning discrepancies surrounding the ownership and operation of the website.

While one instance mentions Hooya Plus Capital Inc., a company based in Labuan, Malaysia, as the operator, another cites Trade211 (Pty) Ltd, a South African entity with no clear indication of its exact business address. This lack of transparency has raised red flags for the regulator, prompting the inclusion of Trade211.com in its warning list.

Investor Protection at Risk

Both the Financial Conduct Authority and BaFin have emphasized the risks associated with dealing with unauthorized financial service providers. The Financial Conduct Authority has warned that investors will not be protected by the Financial Services Compensation Scheme (FSCS) if things go wrong with these unregistered companies, making it highly unlikely for them to recover their investments in the event of a firm’s collapse.

Furthermore, the regulators have urged investors to exercise due diligence and verify the legitimacy of any company offering financial services by cross-checking their details against the respective regulatory bodies’ official registers.

Industry experts have applauded the proactive stance taken by the FCA and BaFin, citing the importance of maintaining a well-regulated financial ecosystem. By clamping down on unauthorized operators, these regulatory bodies aim to uphold investor confidence and protect the integrity of the financial markets.

As the crackdown on unregistered financial service providers intensifies, investors are advised to remain vigilant and prioritize dealing with authorized, reputable firms to safeguard their investments and avoid falling victim to potential fraudulent activities.