ASIC warns against use of binary option provider
The Australian Securities and Investments Commission (ASIC) is warning the public not to click on advertisements from ‘Titantrade', a website which is offering binary trading options, as it is likely to mislead investors.
Titantrade was not licensed to provide financial services in Australia and the public should avoid using their website (www.titantrade.com) or signing up for binary options trading, or their other products and services.
ASIC said unless the operators of the website obtained an Australian license, Australians should avoid it.
Binary options were types of options that tried to predict short-term movements in a share price, currency, index or commodity. They were speculative and high risk.
Any entity that dealt in or provided advice about binary options to Australian investors had to hold an Australian financial services (AFS) license, or be authorised by an AFS licensee.
On 26 July, ASIC took action in the Federal Court of Australia that restrained the operators of the website from providing financial services, while they were unlicensed.
The court prohibited the operators of the website (and other people and related entities that received funds from the site) from issuing financial products, including binary options trading.
The court also prohibited them from advertising and promoting their products and from running the site in Australia.
Court orders were extended until 16 November. ASIC was continuing its investigations into the website and its related entities, which included Allianz Metro Pty Ltd, which allegedly received payments from the website.
Recommended for you
In the latest Meet the Manager profile, Money Management speaks with Michael Skinner, founder and managing director at Blackwattle Investment Partners.
Perpetual has seen AUM rise 6 per cent in the last quarter but the departure of a longstanding JOHCM fund manager led to outflows of $2.2 billion from his strategy.
Global fixed income fund Bentham Global Opportunities has been added to several major platforms, enabling it to be accessed more easily by financial advisers.
Following yesterday’s news about First Sentier Investors closing four investment teams, a second global asset manager has announced it is closing its only dedicated Australian fund.