Continuing a string of warnings against unregulated brokers and other scams targeting retail traders in Canada, Canadian securities regulator Financial and Consumer Affairs Authority of Saskatchewan (FCAA) has issued two Cease Trade Orders against Mpower Technologies Limited and Melnic Group Ltd. The orders expire on May 3, 2017 and may be extended as necessary.
Mpower Technologies Limited claims to be based out of Cyprus, however it does not appear on the list of firms licensed by Cyprus regulator CySEC. Mpower operates under the name of CFD Corporate, and appears to operate two websites: binarycorporate.com and cfdcorporate.com, which provide binary options trading platforms to the public.
The second company, Melnic Group Ltd., claims to operate out of Bulgaria under the name of BossCapital and uses the website bosscapital.com.
None of the named parties are registered to trade in securities in Saskatchewan. Persons or companies need to be registered in order to sell binary options in Saskatchewan.
According to FCAA Enforcement Branch Deputy Director Ed Rodonets,
Despite the issuance of a number of cease trade orders and investor alerts by provincial regulators and the Canadian Securities Administrators, there is an ongoing attempt by these and other binary option companies to solicit funds and investments from Saskatchewan residents.
We are again warning investors about unregistered binary options companies, and are very concerned that despite our ongoing efforts, Saskatchewan residents continue to fall victim to these solicitations. Over the last two years, Saskatchewan residents have lost more than $420,000.
The FCAA warnings against BinaryCorporate and BossCapital can be seen here.