Brokers flagged by SFC
The SFC Has Flagged These Brokers. What This Means for You
The SFC, the Securities and Futures Commission has warned the public about the following brokers. These warnings should be taken seriously and are meant to protect the public from losing money to fake financial services.
Although these brokers haven’t been absolutely proven to have been fraudulent, there are enough reasons to highly suspect any of them. Some of the brokers on this list have been disciplined by regulators and others may have faced criminal prosecution. Others are just flagged, but it’s still not worth taking a chance working with them.
Securities and Futures Commission (SFC)
The Securities and Futures Commissions (SFC) of Hong Kong is an independent organization that is in charge of regulating the market and overseeing brokers and other financial companies. It enforces the laws passed by the government and advocates for and educates consumers concerning financial services and products. The SFC issues licenses to brokers and can revoke them and take other disciplinary actions if there are many customers complaints or proof of infractions.
Why Were These Brokers Flagged by the SFC?
The following are the most frequently occurring reasons for SFC warnings.
- Unlicensed
- Misleading claims
- Clone broker
- Non-compliance
- Numerous customer complaints
- Legal action against the broker
One of the most common reasons a broker is the subject of a SEC complaint is that it has no license, is working with an expired license or has a third-rate license. The SFC also issues warnings if a shady broker is signing up clients from an area that it isn’t licensed to service.
Have you seen promises that you’ll make 5% a week on your investment. Are some brokers even offering double digit returns? These are examples of misleading claims that dodgy brokers make and may earn them a warning from the SFC.
Many of the brokers on this list are clone brokers, meaning they have adopted a name similar to a regulated broker. The idea is to lure customers from the legitimate entity to their fake services.
If brokers don’t comply with regulations, they are likely to get flagged by the SFC. This can be for a variety of reasons, from charging unauthorized fees to engaging in questionable activities.
When dissatisfied customers complain to the SFC in large numbers, they are likely to earn a listing as a suspected scam. Also, if a broker faces legal action, the SFC will let the public know.
Brokers flagged by SFC
Have you been Scammed?