The Securities Division of Financial and Consumer Affairs Authority (FCAA) red flags a binary options firm Melnic Group Limited and issues a Cease Trade Order against it. The FCAA oversees the protection of investor interests via registration, licensing, complaint handling, auditing, and enforcement activities pursuant to various Saskatchewan statutes.
FCAA Canada Boss Capital warning
A binary options brokerage firm Melnic Group Limited claims to operate out of Bulgaria. In addition, the company functions under the name of Boss Capital. It also provides online binary options trading platform through its website www.bosscapital.com. Boss Capital mentions its address as Sofia, Shar Planina Street 63, Bulgaria. Moreover, the firm offers binary options instruments on a variety of assets.
The Canadian provincial watchdog issues a Cease Trade Order against the parent company of Boss Capital. As per the FCAA, the order expires on 3rd of May 2017 and may be extended as necessary. The FCAA states that the company is not registered for securities trading in the Saskatchewan province of Canada. Individuals or firms that want to sell binary options in Saskatchewan need to get registration or license from the FCAA.
Boss Capital previous warnings
This is not the first warning for Boss Capital. Dating back to September 2016, the French Autorité des Marchés Financiers (AMF) blacklisted the Boss Capital as an unauthorized firm. In addition, the Italy’s CONSOB red flagged Boss Capital in July 2016. Also, the Australian Securities and Exchange Commission (ASIC) issued a warning against Boss Capital in June 2016.
The FCAA alerts the investors that many binary options brokerage firms claim to have registration to provide their financial services. However, the registration is usually in a foreign country which does not allow the firms to do their business in Canada. Furthermore, the watchdog advises the Saskatchewan citizens to double check if the companies have legal authorization to perform their business in the province. However, the citizens should immediately follow up by checking in case they receive any unsolicited calls or online offerings of investment opportunities.
Canadian FCAA’s advice to its investors
The Canada’s financial regulator also asks the public to contact the FCAA Securities Division at 306-787-5936 in case anyone from Boss Capital or Melnic Group Limited or any representatives contact them. Ed Rodonets, the FCAA Enforcement Branch Deputy Director in the FCAA Canada Boss Capital warning stated:
“We are again warning investors about unregistered binary options companies, and are very concerned that despite our ongoing efforts, Saskatchewan residents continue to fall victim to these solicitations. Over the last two years, Saskatchewan residents have lost more than $420,000.”