Watch Out for Unregistered Sellers of Binary Options
Financial and Consumer Affairs Authority of Saskatchewan (FCAA) issued two decisions on February 19, 2016, against unregistered companies acting as online dealers for investment in binary options. The decisions in both matters determined that binary options are considered securities and are subject to Saskatchewan’s securities legislation.
RTG Direct Trading Group Ltd., or RTG Direct Trading Limited, and Zulutoys Limited and RBOptions engaged in the business of trading securities and were not properly registered. The companies were ordered to pay administrative penalties of $25,000 each. They are also required to pay compensation to each person or company that has been found to have sustained financial loss.
In the RTG decision the panel pointed out “atrocious and fraudulent actions” in the attempt to extract additional funds from an investor by posing as members of the U.S. Securities Exchange Commission (SEC), as well as fabricating SEC and Court documents, some of which purported to contain the signature of U.S. President Barack Obama.
When thinking about investing, watch for red flags:
- High returns on a low-risk investment
- One time offers
- Urgency to invest
- Sending money out of province or overseas
Companies and people offering binary options need to be registered. To check a registration, visitwww.aretheyregistered.ca.
For information about how to protect yourself against investment fraud visit www.fcaa.gov.sk.ca.