Financial Conduct Authority (FCA) issued a warning regarding IC Markets Global, indicating that the company may be promoting financial services in the UK without proper authorization.

FCA's Warning

In a notice published today (Tuesday), the regulator mentioned that IC Markets Global may be offering financial services in the UK without its permission. Finance Magnates sought comments from the company regarding the regulator’s notice, and we will update this report once we get their feedback.

“This firm may be providing or promoting financial services or products without our permission,” the regulator mentioned. “Almost all firms and individuals must be authorized by us to carry out or promote financial services in the UK. This firm is not authorised by us and may be targeting people in the UK.”

In the watchdog’s warning, the FCA provided various contact details, including a website, email addresses, and multiple telephone numbers. However, the agency advised that these contact details may be incorrect or subject to change, potentially leading investors to further confusion and risk.

Additionally, the authority said that investors who engage with the firm will not have access to the Financial Ombudsman Service for dispute resolution. The Financial Services Compensation Scheme will reportedly not apply in such cases, and the recovery of funds may be highly unlikely.

Previous Regulatory Hurdles

IC Markets faced another regulatory hurdle in July when the Cyprus Securities and Exchange Commission (CySEC) fined the firm operating the IC Markets brand, IC Markets (EU), €200,000. The regulator accused the company of breaching leverage rules. CySEC mentioned that the broker's Cyprus-regulated entity offered users up to 1000:1 leverage through an offshore entity.

This is reportedly against the regulation that allows FX and contracts for differences brokers to offer leverage up to 30:1 in the EU. IC Markets, however, denied the basis of the regulator's fine and vowed to appeal the matter.

A representative from the firm told Finance Magnates: “IC Markets (EU) Ltd categorically denies the basis of the Cyprus Securities and Exchange Commission's (CySEC) decision dated July 19, 2024, and will rigorously pursue an appeal.”Notably, CySEC highlighted that it was not the first time that IC Markets had violated its regulation, pointing to a similar breach it intervened against the broker in 2021.