The Ontario Securities Commission (OSC) recently warned investors about United Financial Commodity Group (UFCG). The regulator said that people should not do business with the said entity.
Why did the OSC warn users?
The OSC is one of the thirteen provincial financial regulators in Canada. It is tasked with investor protection and ensures that capital markets operate fairly and efficiently in the province. The website of the OSC is designed to provide tools, information, and resources for the investors.
It released a regulatory statement, asking people not to conduct business with UFCG. The regulator believes that the company is working out of Bulgaria of England. It added UFCG to its warning list, which has seen a larger number of additions in recent times. The list consists of several firms that do not comply with forex and binary options rules in the country. The representatives of the company reportedly contacted Ontario investors by phone and convinced them to invest in trading options online.
The company’s website unitedfcg.com is also owned by a newly-blacklisted firm, which raises many concerns about the legitimacy of its operations. The firm allowed users to trade in commodities, forex, and digital currencies via options offered online. The firm is not registered in Ontario and is not authorized to trade securities or advise users in terms of investing, buying, or selling securities.
Investors advised to remain vigilant
The OSC said in its statement, “UFCG is soliciting Ontarians via telephone to invest in commodity options. Neither UFCG or its representatives are registered in Ontario to solicit investments or provide advice on investing in, or buying or selling securities or commodities.”
Users should double check the registration and authorization of the firms they are dealing with. The registration status of a company can be checked on the National Registration Search Database of the Canadian Securities Administrators at aretheyregistered.ca.
UFCG is a serial offender in terms of regulator red flagging. Last year, the British Columbia Securities Commission (BCSC) issued a warning against the company. It noted that the company was providing forex trade services in the province without registration or authorization.