Portugal’s regulatory body, Comissão do Mercado de Valores Mobillários (CMVM), has blacklisted unlicenced platforms currently engaged in activities that are very risky for investors.
This is in continuation of its string of warnings against binary options and forex brokers looking for investments from traders in Portugal. CMVM has also sought to know the registration and business operations of RB Options and First Financial Banc.Incenter.
The regulator clearly stated that the mentioned firms are promoting what it calls speculative trading that is very risky to the investors, as they could lose their entire investment.
The CMVM said the local laws stated that registration is required in principle, even for foreign operators providing financial instruments for citizens. The authority also said the registration law includes representatives of the two parties or their brokers.
Other authorities have issued a similar warning
Some of the companies mentioned by the CMVM have been previously warned about their registration status by other regulatory bodies. The companies include Zullutoys as well as its subsidiary RBOptions, which is registered in Canada but doesn’t have the license to operate in Portugal as a financial service.
RBOOptions is a broker based in Canada, who has been on the watch list of several regulators. Already, three financial authorities from Canada have raised eyebrows over the registration status of the company, warning them against any operation without proper licensing.
Ontario Securities Commission (OSC) and the British Columbia Commission (BCSC) are two of such regulatory boards that have warned RBOptions. Also, Saskatchewan’s regulator has issued its warnings against the same brand, although all the warnings were not issued in the same period.
Trading with unlicensed services a big risk
Based on the information available on RBOption’s website, the brokerage firm was set up in the Marshal Islands and owned by Zulutoys Limited. But the clearing services for the company and its websites are issued by RB Secured Processing LTD, a UK-based firm.
The company had its headquarters initially in Canada. After the regulatory crackdown by the Canadian authorities, the firm decided to move its headquarters to Marshal Island, from where it has operated since.
RBOptions drew the attention of the Canadian authorities when the firm released a statement claiming it’s the only binary options brokerage firm with an operational base in Canada. However, it didn’t state whether it has obtained a license to operate or not.
The CMVM has warned investors to desist from doing business with any unregistered entity, as they can lose their money entirely from investing with such entities.