In recent time many regulatory bodies started to attract their attentions to the financial firms operating without regulation. Few days ago Financial Conduct Authority (FCA) from UK issued a warning against CWA Options.
According to FCA belief, this firm has been providing financial services or products in the UK without FCA authorisation. And here is the reason why FCA especially wary about this firm:
“Almost all firms and individuals offering, promoting or selling financial services or products in the UK have to be authorised by us (FCA).
However, some firms act without our (FCA) authorisation and some knowingly run investment scams.
This firm is not authorised by us (FCA) and is targeting people in the UK. Based upon information we (FCA) hold, we (FCA) believe it is carrying on regulated activities which require authorisation.”
After this warning FCA provides websites and contact details of the brokerage.
The FCA noted in its warning that although not all financial service providers in the UK market need to be authorized, most of them are, however this is not the case with CWA Options. It went on to remind market participants that victims of fraudulent entities will not be covered by the Financial Ombudsman Service or Financial Services Compensation Scheme (FSCS) if things go wrong.
The growth of the binary options market and concerns about consumer protection have prompted the UK government to consult on proposals to treat binary options as a financial rather than a gambling product. This would mean binary options would be regulated by the financial watchdog, in line with practice across most of the EU.
High growth in Binary Options related inquiries
In the end of last month, the FCA has reported a significant increase in the Binary Options related inquiries. The UK watchdog has published a report, which highlights that the Binary Options were the type of investment products that experienced the most growth in inquiries for the period from December 1, 2015, to November 30, 2016.
As per the official FCA report, Binary Options investment products related inquiries totaled at 17%. Other investment products, such as shares, Forex, and bonds, stood at 14%, 13%, and 10%, respectively. The report states that the clients were mostly contacting the FCA to double check the reliability of the Binary Option firms.