Brokers flagged by the FSMA
Brokers flagged by the FSMA
The FSMA Has Flagged These Brokers. What This Means for You
The following brokers have drawn public warnings from Belgium’s Financial Services and Markets Authority (FSMA). This should be taken seriously because it is a well-considered warning from an organization authorized by the Belgian government to supervise financial companies and markets, not merely a barrage of bad customer reviews on an unreliable website.
Any warning that a financial regulator issues should be taken carefully. It is their responsibility to alert the public to possible scams. By assembling and regularly updating this list of alleged scam brokers, the Broker Complaint Registry staff makes it our mission to alert customers as well.
We’ve consolidated these alerts into a single, easily accessible location and enhanced them with broker reviews, making it simpler for you to obtain all of the information from various regulators.
About the Financial Services and Markets Authority (FSMA)
The Belgian parliament has given the FSMA, a private supervisory body, the responsibility to oversee and control the nation’s financial markets and financial services. Its objectives also include informing the public about prudent financial decisions and routinely alerting people to possible frauds. Brokers who violate the norms and regulations will be reported.
Why Were These Brokers Flagged by the FSMA?
The FSMA may decide to warn the public about financial services for a variety of reasons, but these are the most frequent ones for the brokers on the list below:
- Unlicensed
- False claims
- Clone broker
- Non-compliance
- Numerous customer complaints
- Legal action against the broker
Regretfully, there are a lot of unlicensed brokers on the internet these days. Many consumers are unaware of the significance of obtaining a license from a top regulator, which is a severe concern. Any broker who purports to be operating in Belgium without a license or to have Belgian clients will be flagged by the FSMA.
Reputable brokers should only make statements that are supported by concrete evidence; otherwise, they are lying to clients. For example, calling oneself “the best” or asserting qualifications that one does not possess can get one into trouble.
The issue of clone brokers—false financial services that use a similar name to a licensed business—is another concern that the FSMA is aware of. This frequently led to public confusion, which is a dishonest broker’s aim.
A broker will be marked if the FSMA receives multiple complaints about them. In the event that they disregard any and all guidelines, they can also receive a warning. In the event that a broker is insolvent or is subject to legal action, such as a cease and desist order, the FSMA will also notify the public.