After being blacklisted in Luxembourg Luxstar catches the attention of the FCA

After being blacklisted in Luxembourg Luxstar catches the attention of the FCA

Luxstar is the latest clone firm that has been added to the long warning list of the Financial Conduct Authority in the UK. The firm has been recognized as an unauthorized financial services provider.

According to the official warning the firm does not hold the proper license by the FCA for providing financial services to British traders and is operating outside the law.

On the official warning issued by the Financial Conduct Authority we further read that the British authorities suspect the brokerage of knowingly participating in investment scams. Traders are warned not to contract the services of LuxStar. Furthermore, we urge readers to only contract the services of regulated and legitimate brokerages which abide by the many rules set out by the ESMA guidelines which include the segregation of accounts and the participation in a financial compensatory scheme. We remind readers that only two weeks ago we reported that the fraudulent firm had appeared on the radar of Luxembourg’s CSSF and we commend the authorities in the UK for remaining vigilant and singling it out as well.

The FCA has provided traders with a consumer helpline and urges anyone that has been “cold called” or targeted in any way by representatives of LuxStar Asset Management to reach them on 0800 111 6768. UK’s main financial regulator regularly updates its warning list and recommends traders always run a quick check on a brokerage on their online registry before investing funds with them.

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