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Screenshot of a breaking news alert e-mail from Q2 2017
Cyprus’ regulator urges investor caution regarding SiliconValley Markets and FXTTCM
Cypriot financial markets regulator CySec has today published a warning to potential investors regarding a company operating in the name of SiliconValley Markets Ltd, stating that it the company does not hold the relevant CIF license which is required for firms offering retail FX accounts to retail clients.
According to its website, SiliconValley Markets provides an online FX trading facility, as well as managed accounts.
Over recent months, FX firms soliciting clients to invest in managed FX accounts in regulated jurisdictions has caught the attention of many regulators worldwide, with CySec having published many warnings of this nature recently.
With regard to the offering of unregulated managed accounts, Hong Kong Securities and Futures Commission (SFC) has issued a similar warning on Thursday advising potential investors in what is widely acknowledged as one of Asia’s largest financial centers, to exercise caution when approaching WealthBuilder FX, which operates via the website https://www.wealthbuilderfx.com/
In this particular warning, CySec asserts that SiliconValley Markets has never been authorized by the Commission, that it is neither a bank nor is it a cooperative firm, and is not established in the Republic of Cyprus or authorised to provide such services.
No notification has been received by a competent authority of another Member State, pursuant to sections 77 and 80 of the Investment Services and Activities and Regulated Markets Law.
Additionally, CySec has today warned that investors should also exercise caution over a further company, operating under the name of fxttcm.co.uk for the same reasons.
Choosing domain names which are similar to established, licensed and reputable FX firms is a practice which has been noted recently by CySec, with this company having a similar name to licensed firm operating in Cyprus.
The regulatory authority recently warned about a similar instance last year, and advised that these are not to be confused with the bona fide Cypriot entities.