The Financial Conduct Authority (FCA) of the United Kingdom has announced that it has stopped the operations of a Cyprus-regulated broker following the discovery of several regulatory violations.
The UK regulator previously gave authorization to Finteractive Limited, doing business as FXVC through the Temporary Permission Regime (TPR), which was implemented following the UK’s exit from the European Union. According to the FCA, the broker “used pressure tactics, described by one customer as ‘relentless’, to encourage consumers to invest ever-increasing sums of money. Some customers were even encouraged to declare they were professional investors despite not meeting the necessary criteria for such categorization.”
Furthermore, the regulator accused the broker of using “a variety of inappropriate techniques, including misleading financial promotions which appeared to offer consumers the opportunity to purchase shares in a well-known company and failed to mention that they were actually promoting CFDs.”
Finteractive Limited, which is authorized and regulated by the Cyprus Securities and Exchange Commission (CySEC), will now have to cease all trading by UK customers and return customer funds as directed by the regulator.