It is no surprise with such complex and confusing financial
regulations throughout Europe relating to financial activities that
the consumer can easily be duped into believing that an investment
broker is legitimate and adequately regulated, only to find that a
smoke screen has been thrown up by a fraudulent broker.
OptionRally Financial Services Limited has been
trading as a licensed and regulated platform since November 2013
when the company was granted a licence by CySEC.
The company then set about creating a web of confusion for
potential investors. OptionRally Financial Services
Limited is European Economic Area
(EEA) authorised and regulated in another
EEA country that is able to offer certain products
and services in the UK.
Furthermore, the Financial Conduct Authority
(FCA) granted Optionrally Financial
Services Ltd. in March 2014 permission to undertake
business in the UK as a credit/financial institution and also as an
"Authorised service provider" in Europe in accordance
with Markets in Financial Instruments Directive
However, there is a major flaw, as far as the defrauded
investors are concerned, relating current UK legislation relating
to binary options trading as binary options trading is classified
as "betting" and not investing and
therefore should be supervised by the Gambling
Commission as opposed to the FCA,
regardless of the fact that the European Commission believes that
certain binary options are actually within the scope of
MiFID and therefore should be regulated by the
FCA rather than the Gambling Commission.
The issue for the defrauded consumer is that the UK
Gambling Commission only regulates a broker that has
remote gambling equipment located within the UK.
If such remote gambling equipment is located outside the UK the
binary options broker will not be regulated by
either the Gambling Commission or the
FCA. There is no cohesive approach to binary
options trading in Europe, different Member States have different
attitudes to these activities, some considering binary options
trading to be a financial product others considering it to be
gambling, Several EU Member States, including
Cyprus, regard binary options trading to be within
the scope of their transposition of MiFID
A binary options brokerage legally established and authorised in
an EU country, as well as Norway,
Lichtenstein and Iceland, (also
entitled to do business throughout Europe via the European
Economic Area (EEA)), can then open the
door and do business in the EU by way of the
"passporting" rules set out in the EU financial services
directives for investment firms and credit and financial
institutions. Clearly this created an opportunity for unknowing
investors targeted by fraudulent brokers.
Giambrone is one of the few law firms with the
capacity and weight to litigate against such financial institutions
that is not prevented from doing so by conflict of interests.
Giambrone acts on behalf of the defrauded investor
to recover their lost funds.
If you have lost money with OptionRally Financial
Services Ltd. and would like to recover your funds please
complete the enquiry form on
this page or contact firstname.lastname@example.org
or telephone +44 (0) 207 183 9482
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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