The Financial and Consumer Affairs Authority of Saskatchewan (FCAA) said it has issued two cease trade orders against the binary options brokers Binary Corporate and Boss Capital. The orders expire on May 3, 2017 and may be extended as necessary.
According to the FCAA, the drastic measures against them are prompted by the huge losses of Saskatchewan residents and the general insolence of the unregulated binary options brokers.
“Despite the issuance of a number of cease trade orders and investor alerts by provincial regulators and the Canadian Securities Administrators, there is an ongoing attempt by these and other binary option companies to solicit funds and investments from Saskatchewan residents,” FCAA Enforcement Branch Deputy Director Ed Rodonets said. “We are again warning investors about unregistered binary options companies, and are very concerned that despite our ongoing efforts, Saskatchewan residents continue to fall victim to these solicitations. Over the last two years, Saskatchewan residents have lost more than $420,000.”
According to FCAA, Boss Capital is owned by Melnic Group Ltd. – a company with an address in Bulgaria. This binary options broker appears to be particularly “popular” with various national regulators. It has appeared on warning lists of the Australian Securities and Investments Commission (ASIC), Italy’s CONSOB and France’s AMF. It also seems that Boss Capital is prone to change ownership and location, as in CONSOB’s warning it was owned by Cheshire Capital from the UK.
The other binary options broker – Mpower Technologies Limited – operates to identical websites: www.cfdcorporate.com and www.binarycorporate.com and is based in Cyprus.
Neither Boss Capital nor Binary Corporate provide regulatory information.
Trading in binary options is not explicitly forbidden in Canada, even though recently the Quebec financial authorities started discussing the idea. The regulation, however, requires that binary options brokers are licensed by the provincial regulators and none of them are. “Many binary option trading companies’ websites contain references to being registered to do business; however, registration is usually in a foreign country and not applicable in Canada”, FCAA noted and added that unsolicited calls and online offers by unregistered companies should be reported to the regulators.