Hong Kong’s financial regulator, the Securities and Futures Commission (SFC), today added OTEX World Corporation to its Alert List.
OTEX World Corporation is the latest brokerage to be listed by the SFC under the category of Unlicensed Entities, and follows a further warning by the regulator just days ago about Ephraim Global, another as reported by Finance Magnates.
Unlicensed Entity
OTEX World Corporation, which operates online via the url www.otexworld.com, is located at The Hansa Bank Building, 1/F, P.O.Box 727, Landsome Road, The Valley, AI-2640, Anguilla, British West Indies. It describes itself as a Proprietary Trading House specialising in executing innovative trading strategies across multiple classes of assets globally.
According to the regulator, the brokerage has been targeting Hong Kong investors when it does not have the authority to do so. Besides not having the required licence in Hong Kong, Finance Magnates was also unable to find any evidence of regulation by any other financial jurisdiction.
Unlicensed entities typically use the names of similar legitimate companies in the hope of attracting would-be investors. Such scams are prevalent across many regulatory jurisdictions, which has subsequently necessitated counter efforts from regulators such as the SFC, the Financial Conduct Authority (FCA) in the UK and the National Futures Association (NFA) in the US.
Hong Kong’s Watchdog
In this instance, the SFC seeks to inform investors by drawing attention to illicit operations and unregulated entities that market participants should abstain from doing business with. Its latest warning today on the activities of OTEX World Corporation is part of its on-going efforts to clamp down on unregulated firms soliciting their services.
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