BDSwiss Holding Plc has been suspended from offering CFDs in the UK. This was FCA’s last decision after an investigation was conducted. The UK’s FX overseer has ordered all BDSwiss Group’s subsidiaries to cease all services in the UK and reimburse all money owed to clients. All trading positions are required to be closed as well.
The FCA allegations are that, although BDSwiss’ UK branch is FCA-licensed, it has come to their attention that a great many UK traders have been pledged by means of the broker’s offshore or overseas branches.
FCA Executive Director of Markets, Sarah Pritchard, commented that the broker was in direct breach of the FCA’s CFDs trading rules by “selling high-risk investments to UK investors”.
Moreover, the watchdog accused BDSwiss Group of employing misleading sales and marketing campaigns. The most common of these were, allegedly, promising very improbable and deceptive profit returns. Due to these ambiguous campaigns and social media affiliates, the FCA noted that a huge many UK traders have lost money.
FinanceMagnates reported that the broker responded to these allegations, and is currently conversing with the regulator. By August 12th BDSwiss is expected to submit a written answer to the FCA, while internal investigations have been put into place.
BDSwiss Group encompasses a huge FX and CFD ecosystem with thousands of traders from all of the world’s corners. Most notably, the company’s branches are regulated in the UK, Seychelles, Mauritius, and Cyprus.