Sweden’s FI notes high volume of complaints against Cypriot brokerages banned in the UK
Shortly after the Cypriot and the UK regulators took action against the brokers operating brands like 24option and ITrader, the Swedish regulator admits that it has received a high number of complaints against these entities.
As FinanceFeeds reported earlier this week, several Cyprus-based brokers were targeted in a regulatory action in the UK and Cyprus.
Hoch Capital Ltd (trading as iTrader and tradeATF), Magnum FX (Cyprus) Ltd (trading as ET Finance), Rodeler Ltd (trading as 24option) and F1Markets Ltd (trading as Investous, StrattonMarkets and Europrime) were ordered to stop offering their services to UK investors. The Cypriot regulator ordered Hoch Capital and Rodeler Ltd to cease all regulated activities entirely, irrespective of the geography to which they passport investment services under European Union law. Magnum FX (Cyprus) Ltd and F1Markets Ltd may only provide investment services to their respective existing clients not resident in the UK but are prohibited from engaging in any and all marketing or promotion of investment services and/or onboarding new clients in any European Union member state.
Several days after the FCA and CySEC announced the action taken, Sweden’s financial markets regulator FI issued a statement on the matter. The Swedish regulator notes the action taken by its counterparts and explains that the brokers in question have been active in Sweden via brands such as ETfinance, Investous, Itrader and 24option.
FI has also noticed an increased number of consumer complaints from these companies. These have mainly been about shortcomings in counseling, aggressive marketing, hidden fees and difficulties in withdrawing money. There have also been several complaints that the brokers have not clearly explained the nature of the product the consumer has invested in. The companies offer investments in CFD contracts, which is a high risk product. In several cases, consumers have reported how the product they invested in has lost all of its value in a short time despite the promise of a secure investment.
FI has had a dialogue with CySEC and reported on these companies and the complaints that Swedish consumers have filed.
FI notes that anyone willing to withdraw their money from any of these companies can do so by contacting the company directly and requesting a withdrawal.
