Hong Kong SFC Suisse Option warning was issued just yesterday. But how come Hong Kong regulator issued a warning for a Swiss firm? Or is it a Swiss firm?
20 April, AtoZForex – Hong Kong financial markets regulator, the Securities and Futures Commission (SFC) has added yet another firm’s name to its Alert List. The list contains the names of the business and individuals that have no registration in Hong Kong. These firms ‘are believed to be, or to have been, targeting Hong Kong investors or claim to have an association with Hong Kong,’ according to the watchdog.
Hong Kong SFC Suisse Option warning
The latest addition to the SFC Alert list – Binary Options firm Suisse Option. The firm is operating online via website suisseoption.com. Moreover, the website is operated by Primary Stream Limited, as it is officially stated on the home page. The brokerage is offering an online Binary Options trading platform.
Furthermore, Suisse Option is listing the following address on the website: Primary Stream Limited, Flat A, 8/F, No.227 Nathan Road, Yau Ma Tei, Kowloon, Hong Kong.
However, the name of this Binary Options broker suggests a different location of the firm. As we read the word ‘Suisse’ in the name of the firm, we directly assume that the broker is operating from Switzerland. However, this might not always be true, just as in the case with Suisse Option.
‘Swiss’ brokerages: Are they really from Switzerland?
Some of the brokerages have been using the word ‘Swiss’ or ‘Suisse’ to appear more reliable in investors’ eyes. Such technique is used by a number of Forex and Binary Options brokers since people have a belief that everything ‘Swiss’ is trustworthy. In fact, Swiss firms worked hard to gain such status. Unfortunately, some of the market players utilize this fact in the wrong way.
In relation to the issue, the Swiss parliament has passed “Swissness legislation” in 2015. This law is aiming to tighten the rules over the use of the “Swiss” word and the use the Swiss cross.
Additionally, earlier in March, AtoZForex has been discussing how various Cyprus-based Forex brokers use the Swiss image in order to mislead investors.
Real Swiss Brokers
The official financial markets regulator in Switzerland – Swiss Financial Market Supervisory Authority (FINMA). The regulator’s responsibilities include supervision of the banks, insurance companies, securities dealers, exchanges, asset managers, collective investment schemes, and fund management companies. Thus, real Swiss Brokers MUST have a license from FINMA. Moreover, they entity names often contain ‘Bank SA.’
According to Yagub Rahimov, AtoZForex academy Captain, the following points will lead you to the real Swiss broker:
- Broker has FINMA registration/authorization
- The firm uses proprietary trading systems
- Broker has its system hosted by themselves
- It’s hosting must be in Switzerland
Previous Suisse Option warning
Prior to the Hong Kong SFC Suisse Option warning, the Suisse Option has been already unmasked by another financial regulator in the beginning of March 2017. The Canadian securities regulator, the British Columbia Securities Commission (BCSC) has cautioned the investors’ community against dealing with Suisse Option.
The watchdog highlights that the residents of the BC were able to open a trading account with the brokerage. In addition to above mentioned, the regulator states:
‘Suisse Option is not registered to trade in, or advise on, securities or exchange contracts in BC’
Exercise extra caution!
We urge you to always pay extra attention to the details of the firm you are planning to invest with. Nowadays, fraudulent firms use very sophisticated techniques to mislead or lure the investors.
Just yesterday, AtoZForex has reported that the website www.ads-securites.com appeared as one of the latest addition to the Alert list of the Hong Kong’s SFC. The name of the website automatically makes you think that SFC has warned investors against dealing with Abu-Dhabi based brokerage ADS Securities. However, this is a complete false. These days, fraudsters do a good job confusing the investors. Be safe!
Think we missed something? Let us know in the comments section below.