Binary options broker PlusOption caught by FCA
A few weeks ago on the 12th of March, the United Kingdom’s Financial Conduct Authority (FCA) provided the public with information pertaining to an unregulated binary options broker, Plusoption, operating under several brands, which have been providing professional investment services to UK residents without regulatory authorization.
No FCA License
The ombudsman warned that Plusoption has no association of any kind with any FCA-licensed entity. Additionally, they mentioned that it specifically operated and targeted UK citizens without a license.
Plusoption runs through www.plusoption.com and has implemented numerous associated brands including Redfield Markets, Tradeplus Solutions Ltd and ACV Operations S.R.L. The FCA cautions that this is a prototypical move for a fraudulent company to gain the confidence of unsuspecting consumers.
The FCA has been very active in cracking down on binary options and in addition to issuing regular warnings, it published in January a list of 94 firms that offer trading to UK investors without approval.
In step with practices across most of the European Union, the FCA has incorporated certain kinds of binary options within its regulatory perimeter together with the implementation of the MiFID II, which came into play back on January 3, 2018.
The binary options blacklist
The watchdog keeps a “blacklist” of binary option brokers based upon evidence received from customers, various partner agencies and from monitoring the online market.
Further action implemented
It is important to note the FCA is not the only government agency to move against binary options. In what the UK police categorized as the largest operation of its kind, officers pounced on the headquarters of 20 binary options brokers in order to examine their compliance forms and gather intelligence on various forms of investment fraud.
More than 80k Pounds a day lost to binary options
The ombudsman’s research in this area discovered the majority of investors who trade in binary options lose their funds and that traders lost an average of £87,410 per day over the duration of 2017.