Many people fall victim to forex and trading scams, and this places regulatory authorities on high alert. These bodies are tasked with identifying firms that may be looking to commit scams of any sort to protect people from losing their money to these fraudulent firms.
The Ontario Securities Commission (OSC) has issued out a warning against HB Global. The regulator has added HB Global to its list of companies that people in its jurisdiction should not engage in business with. The OSC received several complaints about the conduct of the firm with regards to binary options and forex, and HB Global becomes the latest company on the regulatory body’s list of undesirables.
HB Global’s representatives called several Ontario residents in a bid to have these people provide their investment funds. The firm told these people that they would use the investment funds in the trading of shares, forex, precious metals, indices, and commodities on the firm’s online trading platform.
According to the OSC, neither HB Global nor its representatives have the license to operate within Ontario. The firm is not allowed to provide brokerage services, provide investment advice, provide advice with regards to the buying and selling of commodities or securities, and they are not permitted to solicit investments from Ontario’s residents. The firm’s attempts to convince people in Ontario to open trading accounts on its platform are in violation of the provincial laws.
HB Global constant violations
The warning issued by the OSC is not the first time HB Global has been flagged for illegal activity. The firm was flagged by the British Columbia Securities Commission (BCSC) for soliciting traders without the necessary regulatory approval. Another warning against HB Global was also issued by the Financial and Consumer Services Commission of New Brunswick for posing as a forex trading platform in the region without the necessary licensing.
Regulator battle against illegal trading firms
The OSC has been on the ball in upholding their mandate to protect investors in their jurisdiction. In July, the regulator slapped Caldwell Investment Management with a $1.35 million fine after the firm was flagged for not providing its clients with the best execution prices and failure to properly supervise this process. An additional CAD 250,000 was charged to the investment firm for the costs of the investigation conducted by the OSC.
Regulatory authorities are vital to the protection of investors and traders, and this also provides the trading industry with the security it needs. Investors feel safer when they know their interests are protected by a regulatory authority and this gives credibility to the firms that have been cleared by the regulator.