The United Kingdom’s financial markets watchdog, the Financial Conduct Authority (FCA), today warned that it believes an unauthorized company under the name XMarkets has been providing financial services or products to UK residents without regulatory permission, according to an FCA announcement.
All firms and individuals offering, promoting or selling financial services or products in the UK have to be authorised by the FCA.
The watchdog warned that this brokerage firm may be a scam 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.xmarkets.com.
The FCA has waged war on unregistered online trading firms and clone companies, and the number of brokers on its blacklist continues to grow. Last week, the British regulator has continued its ongoing efforts to warn the general public against fraudulent and unauthorized entities. It issued a warning to investors to be cautious as recently derived data illustrates that investors lost an average of £87,410 per day, over the course of 2017.
Besides clarifying that the firm in question lacks the proper authorisation to be targeting British customers, the FCA also said in its official statement that it strongly advises investors to only deal with financial firms that are authorised, and check the Financial Services Register to ensure they are.
British regulatory body further added: “You should be aware that if you give money to an unauthorised firm, you will not be covered by the Financial Ombudsman Service or Financial Services Compensation Scheme (FSCS) if things go wrong.”