Canada’s OSC adds binary options brokers Redtulips Consultants, Binarybrokerz to warning list

Canada’s OSC adds binary options brokers Redtulips Consultants, Binarybrokerz to warning list

The Ontario Securities Commission (OSC) included on Friday two binary options brokers – Redtulips Consultants and DSMG, to its warning list with potentially harmful entities.

Both entities are registered in the UK, but not in Canada’s Ontario, thus they are not authorized to perform trading in securities, or financial and investment advisory services there, the OSC said.

Redtulips Consultants operates under the brand Redwood Binary Options via the website www.redwoodoptions.com, and DSMG uses the websites binarybrokerz.com and brokerz-affiliates.com.

Our research showed the two binary options dealers have not provided any details about licensing or authorization on their websites.

The OSC keeps a warning list with companies that appear to be engaging in activities that may pose a risk to Ontarian investors. The list consists of 194 companies and individuals as of today.

The regulator noted that inclusion of a company to the warning list doesn’t necessarily mean the OSC has made a finding on them. The commission adds to the list entities that it considers are not registered in Ontario, but nevertheless are selling securities or offering investment advice to local citizens, or claiming to sell securities or offer investment advice from Ontario. Another scenario where companies are entered into the OSC’s Warning List is when they offer securities without a prospectus, as the laws require.

Usually, the OSC receives alerts against these companies from investors or other regulators. They even make investor alerts public, aiming to inform of potentially harmful activities that take place.

The OSC is a regulatory body, and as such it makes rules, monitors market participants for compliance with the rules, and investigates possible law breaches, and if it finds a company in breach, the regulator can impose sanctions and bring it to court.

Source: OSC

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