The Financial Conduct Authority (FCA), the main financial regulatory body of United Kingdom, has warned local financial traders which could be affected by this, that the OneTrade brokerage company seems to have another opened company that has the same name. This is a clone company that is being illegally represented under the same name as OneTrade as is breaking the law by doing this and by misleading their prospective and current investors.
The British financial regulator is highlighting that, according to the law and current regulatory framework, only the original trading firm is authorized and available to offer financial services in the United Kingdom.
According to the issued warning that can be found on the website pages of the Financial Conduct Authority, the ‘new’ company has assumed the name of the already existing, registered firm. This is highly illegal, but it is also one of the tactics employed by the illegitimate broker companies in order to attract and scam as many unsuspecting investors as possible.
Obviously, the FCA has also warned against registering and trading with any unlicensed brokerage company as there is always a great risk that the particular company is running a scam operation and is looking to double-cross the investors who are not aware of the differences.
Clone companies seem to be on the rise at the moment. The Financial Conduct Authority has been attempting to identify and expose the false, clone companies in order to protect the investors. Only last week, the British watchdog, FCA, has issued another warning, but this time it was against a clone broker that has been representing itself under the already existing name of Blackrock Asset Management UK Limited.
The tactics of ‘impersonation’ in this case were very subtle and hard to detect. However, upon closer inspection, the FCA discovered that the clone firm removed the ‘UK Limited’ from their name and changed the website address from .com to .ga so that the differences between firms are as small as possible but still existing.
It seems that there is no shortage of clone companies cropping up lately, so it is believed that many more of these warnings and legal sanctioning is yet to come.