SEC says DailyFX is illegally soliciting investments from investors
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
The US Securities and Exchange Commission (SEC) has said that DailyFX is barred from soliciting investments from investors. The SEC has added DailyFX to the Public Alerts: Unregistered Soliciting Entities (PAUSE) list.
SEC bars DailyFX from soliciting investments
The PAUSE program by the SEC is aimed at investor protection. The program contains a list of firms that solicit investments by falsely claiming to be registered, licensed, or based in the US. DailyFX has now been classified as an unregistered soliciting entity.
The PAUSE program also lists firms that have impersonated genuine entities regulated in the United States. It also lists fake regulatory sites, government agencies, and international entities.
The SEC has now said that DailyFX operates from Chicago and is an unregistered soliciting firm. However, the DailyFX website said the platform does not operate in the United States. Instead, its operations are focused on Johannesburg, Krakow, London, Singapore, Sydney, and Tokyo.
The website also adds that DailyFX is not registered as an Introducing broker with the Commodity Futures Trading Commission (CFTC). Additionally, the platform was not a National Futures Association (NFA) member.
“Any and all information provided by FXP is not intended for use by US residents or individuals domiciled in the US Information presented by FXP should be construed as market commentary, merely observing economical, political and market conditions,” The SEC said.
IG Group reacted to SEC’s addition of DailyFX to the PAUSE list. The company said that DailyFX resources are used to serve its clients in Asia and Europe best. DailyFX does not conduct any regulated activity in the US, and it also applied for deregistration with the NFA. The deregistration process was recently completed.
SEC takes action against trading news providers
The SEC usually targets the platforms that offer trading services directly, but it has also cracked down on trading news platforms in the past. One trading news platform the SEC targets is Seeking Alpha, which allows people to create their accounts and publish content.
In 2013, the SEC imposed charges against Seeking Alpha for violating federal securities laws by allowing contributors to publish articles with false and misleading information about some publicly traded companies.
The allegations made by the SEC forced Seeking Alpha to pay a penalty of $75,000 to settle the charges. The SEC also imposed a cease-and-desist order against Seeking Alpha and required the platform to take measures to ensure that similar violations do not happen.
DailyFX is a closed platform where vetted individuals contribute the news and analysis. The SEC’s actions against trading news platforms aim to prevent insider trading. It also ensures that information is shared with the public in a fair and timely manner. The action is also part of the changes to trading news regulations made by the regulator in 2013, including online news sites and social media platforms.
