FCA Issues Warning Against IC Markets Global For Unauthorized Services

The Financial Conduct Authority (FCA) has issued a warning regarding IC Markets Global for offering financial services in the UK without regulatory approval. According to the FCA’s statement released recently, the company may be promoting and providing financial services in the UK without its authorization.

The regulator emphasized that firms operating in the UK must be approved by the FCA to ensure compliance with its stringent regulatory framework.

FCA Warns Of Risks In Dealing With Unauthorized Firms Like IC Markets Global

The FCA said IC Markets Global might be offering or advertising financial services without permission. The regulator explained that most companies and people must be approved by them to provide or promote these services in the UK. The FCA added that IC Markets Global is not approved and might be trying to reach people in the UK.

The FCA also shared different contact details for IC Markets Global, such as a website, email addresses, and phone numbers. However, they warned that these details might not be correct or could change, which could confuse investors and put them at risk.

The regulator pointed out that there is a big risk for people who deal with companies like IC Markets Global that are not approved. Investors won’t get help from the Financial Ombudsman Service (FOS) or the Financial Services Compensation Scheme (FSCS).

This means it could be very hard, or even impossible, to get back lost money. This lack of protection shows the dangers of working with companies that are not regulated by the FCA.

CySEC Fines IC Markets For Breaching Leverage Rules

IC Markets has also faced questions from regulators in other places, not just the UK. In July, the Cyprus Securities and Exchange Commission (CySEC) gave a €200,000 fine to IC Markets (EU), which is based in Cyprus.

CySEC said the company broke the rules by offering customers up to 1000:1 leverage through an offshore partner. This was against EU rules, which stated that retail clients can only have leverage of up to 30:1 when trading forex and contracts for differences (CFDs).

The Cypriot regulator revealed that this was the second time IC Markets had broken the rules, as a similar problem happened in 2021. CySEC’s latest action shows that brokers working in many places are being watched more closely. This is especially true for those trying to get around local rules by using offshore companies.

However, IC Markets firmly denied the claims made by CySEC. A company spokesperson said, “IC Markets (EU) Ltd strongly denies the Cyprus Securities and Exchange Commission’s (CySEC) decision from July 19, 2024, and will strongly fight against it.”