Investor Alert for Stanford FX
The Nova Scotia Securities Commission is alerting investors that Stanford FX is not registered to trade in securities or derivatives in Nova Scotia.
Stanford FX claims to be an online trading platform and brokerage operating out of London, England. It also claims to be registered by the Financial Conduct Authority in the United Kingdom. A recent warning notice issued by the Financial Conduct Authority confirms Stanford FX is not registered or authorized there.
At least one Nova Scotian investor lost money after opening an account with Stanford FX. After account details showed growing profits earned on the investment, representatives of Stanford FX tried to convince the investor to deposit more money by promoting greater future profits. Requests for withdrawals from the account were ignored. An online search shows multiple additional investors claiming to have been scammed.
The commission urges Nova Scotians to exercise extreme caution when dealing with firms that are not registered in Nova Scotia. If people are contacted by Stanford FX or approached with an investment opportunity that may be fraudulent, they should contact the commission or the securities regulator in their jurisdiction.
Quotes:
“The internet can be a dangerous place to shop for investments but can also assist in identifying scams. In additional to verifying registration, always take the time to search the entity and its representatives. A simple Google search often provides a wealth of information about an entity’s legitimacy or lack thereof including alerts and warnings, complaints, reviews and other information to caution investors and assist in making informed investment decisions. Taking a few minutes to search the entity and individual names may save you from irreversible financial loss.”
– Stephanie Atkinson, director of enforcement, Nova Scotia Securities Commission
Quick Facts:
- it is illegal to solicit investments in Nova Scotia without registering with the commission and complying with Nova Scotia securities laws, unless an exemption applies
Additional Resources:
To file a complaint or report a scam to the Nova Scotia Securities Commission: https://nssc.novascotia.ca/recognize-and-report-scam
To see if a company or person is registered, check the Canadian Securities Administrators’ National Registration Search at https://www.securities-administrators.ca/nrs/nrsearchprep.aspx?ID=1325
Warning notice issued by the Financial Conduct Authority in the United Kingdom: https://www.fca.org.uk/news/warnings/stanford-fx