The (FMA), the New Zealand government agency responsible for financial regulation, has flagged in the foreign exchange (forex) space that it claims is suspicious this Friday.
Specifically, the New Zealand regulator has called out FFS Markets Limited and the associated trading name Forex FS Group for suspicious activity. Namely, the entity has been claiming that it is licensed or registered in the country, which it is not.
Forex FS Group has Withheld Client Funds, FMA Cautions
Furthermore, the FMA highlighted that it has received a report from a New Zealand resident that FFS Markets Limited has been withholding their funds. This coupled with the false authorisation claims have led to today’s warning.
Taking a look at the company’s website, http://www.forexfs.cn/, it states that it is an online trading provider of FX and contract-for-difference (CFD) products. At the bottom of its site, it claims that FFS Holdings Ltd. has multinational authority supervision and that its New Zealand companies hold New Zealand financial services FSP license.
“Forex Financial Services Pacific Ltd breaks the regional limits of global investment and services with a pioneering attitude, providing investors with hundreds of foreign exchange and other financial derivatives to meet the diverse market needs of different countries and regions. Products, mainly including foreign exchange, precious metals, energy and CFD products,” the company states on its website.
Because of today’s warning, residents of New Zealand should be wary of trading with FFS Markets Limited or Forex FS Group. If you are ever unsure if you have been contacted by a financial scam or are considering investing your money in an online trading provider, it is always a good idea to first check the of your local regulator, or reach out to them to check the authenticity of the firm.