A stable, well-functioning financial market for allA stable, well-functioning financial market for allFI notifies foreign supervisory authorities after complaints about misleading advice
FI has been receiving complaints from consumers in Sweden about four foreign investment firms. The foreign supervisory authorities who are responsible for the supervision of these companies have been notified about the complaints.
Authorisation is required to conduct business on the financial market in Sweden. However, some firms receive their authorisation from foreign authorities. These firms fall under the supervision of the authorities in their home state.
FI has recently been receiving complaints from consumers in Sweden about four foreign investment firms. These complaints have also been described in the consumer protection report that was released earlier in the week.
The complaints relate to the following firms: Capital Securities with the brand Liquidity X, Notesco Financial Services with the brand Ironfx, Vie Finance A.e.p.e.y.s.a with the brand Fortissio, and Mca Intelifunds with the brand Fxoro.
One thing that these firms have in common is that they all offer investments in so-called CFD contracts (contracts for difference, a type of derivative) that are normally associated with very high risk. Consumers have contacted FI and reported that they feel tricked; they have not received information about the risk associated with these investments.
"We do not have the same possibility to investigate firms that received their authorisation from another country like we do for Swedish firms. Therefore, we must react differently – by notifying and staying in contact with the foreign supervisory authorities," says Marie Asperud, a senior supervisor at FI.
These firms must follow the rules that apply within the EU in conjunction with trading and advice related to investments. Since the firms are registered in Greece and Cyprus, however, it is the supervisory authorities in Greece and Cyprus that are responsible for the supervision. Therefore, FI has contacted the foreign supervisory authorities and notified them about the complaints. Since then, Capital Securities has lost its authorisation.
FI can receive complaints from consumers, but FI cannot help consumers get their money back, and FI does not investigate crimes. Consumers who feel they are the victim of a crime should contact the police.
