Canada IIAC defends Binary Options claiming that the market problems lie elsewhere. What is IIAC’s proposal and will Quebec AMF proceed with the binary options ban or listen to the IIAC?
8 March, AtoZForex – The Investment Industry Association of Canada (IIAC) is the national association of the securities sector. It represents 132 members that are brokerage firms regulated by the Investment Industry Regulatory Organization of Canada (IIROC).
On behalf of its members, the IIAC proposes that binary options trading should be allowed in Canada through regulated firms. In other words, Canada IIAC defends Binary Options claiming that the issue is not related to binary options, but is a problem of another nature.
What are Quebec AMF plans for binary options?
Nowadays, the binary options industry has been often in the news on the negative side. A number of financial regulators are issuing warnings against the speculative and risky nature of binary options. Moreover, some of them have even banned binary options trading or marketing in their region. All due to the large number of complaints in 2016 across Canada. The most disturbing case was that of a 61-year-old Canadian trader, Frederick Felix Turbide of Edmonton Alberta. He put an end to his life reportedly after binary options firm 23Traders lost his funds and savings. In response to this horrid case, the CSA has formed a task force to fight off binary options fraud.
In Quebec, previous month, the provincial regulator already announced plans to make adjustments to the Canadian province’s Derivatives Regulation. This plan was to officially prohibit the offering of the particular kinds of binary options to Quebec investors. However, the regulator did not decide on the blanket ban on all kinds of binary options. Instead, it proposed to impose a ban on binary options products with expiries of less than 30 days. Apparently, the Canadian provincial financial regulator believes that some of the binary options trading can be safe.
Canada IIAC defends Binary Options
The IIAC defends the position of the securities sector stating that binary options are not the problem as such. Moreover, it never denied that the fraudulent and the unauthorized entities offering binary options are problematic. Furthermore, the issuing of warning notices by various regulators is an evidence of the seriousness of this issue. Such illegal activities must be regulated by the Quebec AMF to protect the investors against the fraudulent practices. However, certain investors mistake this unlawful activity for that of Canada’s regulated brokers. Therefore, the reputation of binary options industry is indirectly at stake.
According to IIAC, the fraudulent and illegal trading of binary options must be stopped. However, it took a stance against the Quebec AMF’s plan to curb the offer of binary options. The IIAC proposes that the brokerage firms regulated by the IIROC should be allowed to be registered to offer binary options in Canada. The IIAC aims to establish a dynamic and prosperous securities sector sustained by solid and efficient capital markets.
What do you think will Quebec AMF consider the IIAC’s proposal?