FCA warns against Binary Options Broker CTOption
Through a warning to the public issued on 1st November 2016, the UK’s financial regulatory body, the Financial Conduct Authority (FCA), informs all investors of its belief that a UK-based company trading under the name CTOption has been providing financial services or products without regulatory permission, especially since firms and individuals offering, promoting or selling financial services or products in the UK have to be authorised by the FCA.
The watchdog states in its announcement that the suspicious company is situated at 2 Woodberry Grove, London, N12 0DR, and that it trades through the website https://ctoption.com, which is owned and managed by InfiniCore Ltd. Saint Vincent. Although not blatantly claiming to be FCA regulated, it is clear from visiting its website that CTOption is indeed attempting to mislead investors that it is offering a legal product through indirectly hinting that it is FCA approved.
Besides clarifying that the firm in question lacks the proper authorisation to be targeting British customers, the FCA also reminds the public of the need to avoid trading with unauthorized firms, since those that fall victim of fraudulent entities will not be covered by the Financial Ombudsman Service or Financial Services Compensation Scheme (FSCS).
In fact it should be pointed out that, in accordance with the current regulatory framework of binary options trading in the UK, CTOption should have been licensed and regulated by the UK Gambling Commission, however it should also be reminded that the UK Government, prompted by the growth of the binary options industry and increased concern about the protection of consumers, is now thinking of adopting the practice in place across most EU countries, where binary options are not treated as a gambling product, but as a financial product instead and are thus regulated by the financial watchdog in each country.