CSA concerned about unregistered activity around binary options from paltforms based in countries like Cyprus, Belize and the Seychelles 

The Canadian Securities Administrators (CSA) has issued an announcement to inform and encourage all investors to participate in Check Registration Day on March 16, 2016 by visiting aretheyregistered.ca to see whether the individual or firm offering them an investment or advice is registered to do so.

Canadian securities regulators will only register firms and individuals that meet specific qualifications and standards. Checking the registration of the person or firm selling you stocks, bonds, mutual funds or other securities helps to protect investors and build confidence in our capital markets.

“We’re particularly concerned about unregistered activity around binary options,” said Louis Morisset, Chair of the CSA and President and CEO of the Autorité des marchés financiers. “Many binary options trading platforms are based overseas and, despite listing Canadian contact information, none of the companies managing these platforms are registered to conduct business in Canada.”

Binary options are essentially “bets” on how a particular underlying asset will perform in a limited amount of time. The CSA is aware of a number of binary options trading platforms, many purportedly based overseas in countries like Cyprus, Belize and the Seychelles, that are soliciting Canadians by making untrue and/or misleading statements about Canadian securities regulators’ oversight of binary options. This has resulted in the CSA issuing an alert in 2015urging investors to use extreme caution when considering an investment in binary options.

Offering investment services or products in Canada, whether online or in person, is a regulated activity.

Source: CSA 

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