The BCSC Has Flagged These Brokers. What This Means for You
The following brokers have been flagged by the British Columbia Securities Commission, or BCSC. This list is always being updated to reflect more financial services about which the BCSC has alerted the public. Cross off any brokers or financial services you are considering creating an account with or are presently using from your list and search for a regulated broker instead.
There are sufficient grounds to seriously suspect any of these brokers, even though it hasn’t been established beyond a reasonable doubt that they are dishonest. A few brokers on this list may have been charged with a crime, while others may have received regulatory penalties. Some have only been marked, but it’s still not worth the risk to collaborate with them.
About the British Columbia Securities Commission (BCSC)
While maintaining its independence, the British Columbia Securities Commission collaborates with the Canadian government to guarantee an equitable and transparent investing environment for all investors. The organization keeps track on brokers and financial services in British Columbia and ensures that they follow the law and offer reasonable terms to clients.
The BCSC monitors for regulatory violations and prosecutes brokers and financial services that violate the law. To help clients recover their funds, the organization collaborates closely with law enforcement.
Why Were These Brokers Flagged by the BCSC?
The BCSC may decide to alert the public about financial services for a variety of reasons, but these are the most frequent ones for the brokers on the following list:
- Unlicensed
- False claims
- Clone broker
- Non-compliance
- Numerous customer complaints
- Legal action against the broker
The majority of potentially fraudulent financial services that we come across are either operating without a license or are lying about having one. The BCSC is aware of this as well as deceptive statements made to clients, such as adding costs that weren’t specified in the original contract or promising particular rates of return.
Many brokers use names that are similar to those of licensed financial businesses, but they are really imposters. We refer to this as a clone broker fraud. In addition, brokers are subject to accountability from the BCSC for breaking national laws and licensing regulations. They caution the public about dealing with brokers who have a history of legitimate complaints that number in the hundreds. Lastly, the BCSC will issue a warning if the broker is the subject of legal action or if they are bankrupt.