The Australian Securities and Investments Commission (ASIC) has issued warnings against two brokerages, 72Option and a clone of London Capital Group. The regulatory authority expressed concern that the two financial entities might be running scam operations.
The two online trading companies have been soliciting clients by phone and email, offering financial services and advice without acquiring an Australian Credit license or a current Australian Financial Services (AFS) license. Due to their running both operations illegally, the Australian financial watchdog has alerted traders that they might be involved in a scam.
ASIC strongly advises against funding an account or trading with the two aforementioned firms.
72Option, also known as Epic Ventures Ltd., is a binary options broker claiming an office at the Landmark Building, 14 Tsar Osvoboditel Blvd, 5th Floor, 1000 Sofia, Bulgaria. London Capital Group is a clone of the forex brokerage, and claims an office at 8 King Edward Street, London EC1A 7BA, England. In the warning against the latter, ASIC provided a link to the UK’s Financial Conduct Authority (FCA) regarding the clone firm.
ASIC’s Recent Endeavours
Today, the Australian regulatory authority may begin taking further action in policing the local markets and protecting traders and investors based in Australia. One such precaution will be gaining broader access to clients’ telecommunications, including emails, data, messaging history, voicemails, and subscribers’ details. The regulatory body states that this new policy will assist in investigations against brokers that are running scam operations.
Currently ASIC, among other regulatory authorities around the world, refrain from intercepting calls, but that may change once alterations are made to the Telecommunications Interception and Access Act (TIA Act: 1979).