Company Ordered to Pay $1.5 Million Penalty
The Ontario Securities Commission (OSC) has found that NovaTech FX, a foreign exchange (forex) dealer, breached Ontario securities law. The OSC found that NovaTech FX:
Made Misleading Statements to Investors
NovaTech FX made false and misleading statements to investors about its trading platform, its trading strategies, and its track record. These statements led investors to believe that they could make substantial profits with NovaTech FX, when in fact the vast majority of investors lost money.
Failed to Properly Supervise Traders
NovaTech FX failed to properly supervise its traders. This allowed traders to engage in unauthorized trading and to make false and misleading statements to investors.
Paid Undisclosed Commissions to Introducing Brokers
NovaTech FX paid undisclosed commissions to introducing brokers who referred investors to the company. These commissions created a conflict of interest for the introducing brokers and led them to recommend NovaTech FX to investors without regard to the investors’ best interests.
As a result of its findings, the OSC has ordered NovaTech FX to pay a $1.5 million penalty. The OSC has also ordered NovaTech FX to cease trading in Ontario and to return all investor funds.
The OSC’s findings are a reminder that investors should be cautious when investing in forex. Forex is a complex and risky investment, and there are many unscrupulous companies that prey on unsuspecting investors.
Tips for Investors
* Do your research before investing in any forex company. Make sure the company is registered with the OSC and that it has a good reputation.
* Be wary of companies that make unrealistic profit claims. If something sounds too good to be true, it probably is.
* Never invest more money than you can afford to lose. Forex is a risky investment, and you could lose all of your money.
Contact the OSC
If you have any questions about forex or if you believe that you have been scammed by a forex company, please contact the OSC at 1-877-785-1555.
Kind regards
J. Goodwin
