BaFin Warns Against Two Asset Management Firms and Fake German Bank

Germany’s Federal Financial Supervisory Authority, widely known as BaFin, has added three firms to its warning list today. In particular, the financial regulator has issued a cease and desist warning against two asset management companies - Atlantic Global Asset Management (AGAM) and Five Winds Asset Management.

The warnings was issued on August 21, 2018. This is because both companies offer investment products to investors based in Germany without the proper authorisation. More often than not, this indicates that they are operating a scam.

The cease and desist notices are effective immediately, however they are not final, the statement said.

According to the statement from the German financial regulator, both firms offer investment portfolios through their websites and a network of agents, with some being based in Germany. AGAM operates through www.atlanticgam.es, whilst Five Winds can be reached via www.fivewindsam.com

Both companies claim that investors will receive returns based on the performance of the portfolio. The investors themselves are not able to make any investment decisions about the financial instruments that they invested in. Furthermore, the exact investment strategies are not specified.

BaFin blacklists ISC Bank

BaFin has also blacklisted ISC Bank, which gives the impression through its website (www.iscbank.de) that it is a German bank. However, the German watchdog has clarified through a statement that this is not true. In fact, the company has no permission from BaFin to execute banking transactions in German and it is not an authorised bank.

ISC Bank claims on its website to be a modern mobile bank and investment solution firm. It alleges that it provides consumers with a bank account with “features built for real people”. These features apparently make sending, saving and keeping money safer easier than ever.

Consumers should take care when dealing with any of the aforementioned firms. With the large number of scams in the financial industry, it is important for traders and investors to do their due diligence before investing with any company.