The UK’s Financial Conduct Authority (FCA) has announced that it has banned two members of the BDSwiss Group from offering high-risk contracts for differences (CFDs) to British investors. The regulator said that BDSwiss Group used the fact that one of its companies was regulated in the UK to pass legitimacy to the entire group. However, almost all British investors trade through the group’s overseas companies that are not authorized to provide regulated services in the UK.
The FCA identified serious concerns with the sales and marketing practices of the BDSwiss Group, including the use of misleading financial promotions which made unrealistic claims about the likely returns and failed to outline the risks associated with CFDs trading.