Canada’s BCSC warns against Option Financial Markets

Canada’s BCSC warns against Option Financial Markets

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One of Canada’s regional financial watchdogs, the British Columbia Securities Commission (BCSC) has published an investment caution notice against the binary options broker Option Financial Markets, operated by B.O. Technologies. According to the commission, the companies are not licensed to trade in, or advise on, securities or exchange contracts in the Canadian province.

The broker, operating the website Option.fm claims to be based in Hong Kong. According to its website, it is regulated by Belize’s International Financial Services Commission (IFSC) since 2015. An SMN check revealed that this is true.

The BCSC, however, became aware that a British Columbia resident was solicited by a representative of Option Financial Markets, and was able to open a trading account with the broker, in spite the fact that the company does not have a license to do business in the province.

Unlike many other countries, Canada does not have a national financial services regulator. The providers of investment services and advice are regulated on a provincial level and the laws in each region vary somewhat.

In March, however,  the Canadian Securities Administrators (CSA), an umbrella organization of Canada’s provincial and territorial securities regulators, published a notice informing the public that there is not a single binary options broker licensed in neither of the country’s provinces. This does not stop various binary options broker from soliciting Canadian residents and sometimes outright ripping them off. In another curious case, the CentralOption broker, of which the BCSC has warned in the end of March, unwittingly made the mistake to offer its services to a fraud investigator with the Manitoba Securities Commission.

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