The UK regulator has taken actions to stop Cypriot-based firm, BDSwiss Holding Plc, and other members of the BDSwiss Group from offering high risk CFDs to UK traders.
According to FCA’s announcement, the BDSwiss Group used the UK authorisation of one of its entities to conduct business in the UK. The regulator stated that 99% of its UK customers, however, traded through the overseas units of the company, which are not regulated in the UK. By trading with entities without authorisation to provide services in the UK, the customers lost their protection.
Sarah Pritchard, Executive Director, Markets at the FCA said:
This group was selling high risk investments to UK investors in breach of our perimeter and the rules for CFDs we have put in place to protect retail investors.
Many investors were attracted to the firm via social media accounts. Consumers should be very wary of those on social media making promises which look too good to be true and be careful where they invest their money. We have acted where we can but once again repeat our call for restrictions on this type of advertising to be included in the Online Safety Bill.