The UK’s Financial Conduct Authority (FCA) has issued a cautionary notice against IC Markets Global, stating that the company may be operating without proper authorization in the UK. The warning suggests that investors should exercise caution when dealing with the firm, as they may not have access to protective compensation schemes.
FCA’s Concern Over Unauthorized Services
The FCA announced that IC Markets Global appears to be offering financial services in the UK without the necessary permissions. According to the regulator, almost all companies offering or promoting financial products in the UK must be authorized. However, IC Markets Global does not hold such authorization, making its activities potentially illegal.
“This firm may be providing or promoting financial services or products without our permission,” the FCA stated. “Any individuals engaging with this company should be aware that it is not regulated by us and may be targeting people in the UK.”
The regulator further cautioned that the contact details provided by IC Markets Global, including website links, phone numbers, and emails, might be misleading or subject to change. Investors who fall victim to any potential fraud may find it difficult to recover their funds.
Limited Protection for Investors
The FCA emphasized that customers dealing with IC Markets Global will not be able to seek assistance from the Financial Ombudsman Service in the event of a dispute. Additionally, they would not be covered by the Financial Services Compensation Scheme, making it highly unlikely for them to receive compensation if they suffer losses.
Previous Compliance Issues
This is not the first regulatory challenge faced by IC Markets. In July, the Cyprus Securities and Exchange Commission (CySEC) fined the firm’s European branch, IC Markets (EU), €200,000 for allegedly breaching leverage regulations. CySEC accused the company of offering up to 1000:1 leverage through an offshore entity, exceeding the 30:1 limit permitted in the European Union.
Despite this, IC Markets (EU) rejected the basis of the fine and announced its intention to appeal the decision. The company stated: “IC Markets (EU) Ltd categorically denies the basis of the Cyprus Securities and Exchange Commission’s (CySEC) decision dated July 19, 2024, and will rigorously pursue an appeal.”
A Recurring Pattern
CySEC pointed out that this was not the first time IC Markets had been found in breach of its regulations. The firm faced a similar compliance issue in 2021, raising concerns about its adherence to regulatory standards in the jurisdictions it operates.
With the FCA’s latest warning, IC Markets Global’s operations in the UK are now under increased scrutiny. Investors are advised to remain vigilant and verify the regulatory status of firms before engaging in financial transactions.
