Regulators:  SVGFSA does NOT regulate Forex, Binary Options, or CryptoCurrencies

Regulators: SVGFSA does NOT regulate Forex, Binary Options, or CryptoCurrencies

 Prerequisite:   Before you complain to regulators 

Country: Saint Vincent and the Grenadines
Country Common Nicknames: Saint Vincent, SVG
Big Bad Regulator, Long Name: Saint Vincent and the Grenadines Financial Services Authority
BBR, Short name: SVG FSA, SVGFSA
Type: Government
Main website homepage:
Regulatory licenses issued: [NONE!!! see below and also 2022, 2021, 2020, 2018]
Complaints: Varies
Do they do alerts? Yes, occasionally: http://svgfsa.com/investor-alerts/
Do they ever eject a registered company? n/a
Do they ever fine a registered company? n/a
Do they ever directly or indirectly file criminal charges? n/a
Do they ever mandate repayments to clients? no
Contact info see below [keep reading until end]

There have been several recent FPA scam alert posts with either the thread’s OP or other readers falsely assuming that a company mentioning that they are “registered”, “regulated”, et. al. by St Vincent and the Grenadines Financial Services Authority (SVG FSA or SVGFSA) implies some regulatory safeguards. So this notice is to explain quite bluntly that SVG FSA has not and currently does not provide any regulation for forex, binary options, or crypto-currency service providers. This includes brokers, signal providers, and technology providers.

Just because there is no regulation, does not necessarily prevent a company from offering those services. It depends on the region. It just means that if there is zero regulatory oversight, then there is no recourse via that region’s regulatory authority should a transaction turn out to have adverse outcome. So basically it is no different than having a private agreement between you and the company. If you are ok with that, then caveat emptor my dear reader.

My understanding of financial markets (particularly off-exchange markets) is that most regions do have some regulatory oversight. This can include:

      • mandatory registration into a regulatory database,
      • minimum capital requirements,
      • post trade statistics reporting,
      • segregation of client funds from other firm assets,
      • fiduciary responsibility to honor deposits/withdrawals timely,
      • electronic surveillance of order flow,
      • other rules deemed necessary to protect the larger public.

These rules are put in place mainly due to the systemic risk that can spread to the larger society should large losses or loss of confidence occur in certain capital markets.

Another important note:  There are other ways that service providers use “regulation” to try to trick people into thinking their services are more credible. So even the regulated are often fooled as they often only use very basic metrics to judge a broker’s performance (spreads, leverage) and overlook other aspects of evaluating a broker’s “true” business model. Those details are for another article. In the mean time, you can read this report on Prime of Prime service evaluation to get a basic idea of how the different brokerage Tiers work.

With that said, I will quote/attach the proof directly from the horses mouth (SVG FSA and the Financial Intelligence Unit–FIU):

[2019 March 29]…The FSA does not issue any licenses to carry on the business of FOREX Trading or Brokerage or Binary Options Trading nor does the FSA “Regulate, Monitor, Supervise or License” International Business Companies (IBCs) which engage in such activities.

IBCs incorporated in St. Vincent and the Grenadines are authorized to engage in any business activity without approval from the FSA, except where the proposed business activity relates to banking, insurance or mutual fund businesses. Banking, insurance and mutual fund businesses are licensed activities. FOREX or Brokers Trading licenses are not issued by any authority in St. Vincent and the Grenadines….

[2019 June 15]…The Authorities in St. Vincent and the Grenadines are aware of the recent growing international trend of Forex Trading and Cryptocurrency. It is advised however, that there is no regulation in place for Foreign Exchange (Forex) Trading and Cryptocurrency offerings in St. Vincent and the Grenadines. Furthermore, no Forex Trading or Cryptocurrency licenses are issued in St. Vincent and the Grenadines. These are speculative investments with considerable risks to the investor.

Members of the public are urged to exercise caution before engaging in any Forex Trading activities or accepting Cryptocurrency offerings….

[emphasis mine]

 

Source:  http://svgfsa.com/alert-1-of-2018-f…ading-or-brokerage-or-binary-options-trading/   and   http://svgfsa.com/alert-2-of-2018-foreign-exchange-forex-trading-and-cryptocurrency-offerings/

_______________________________________________

This is not a recent development.  SVG has never regulated forex et. al. from at least since June 2014:

[≈ 2014 June]…The Authorities in [SVG] are aware of the recent growing international trend of Forex Trading and Cryptocurrency. It is advised however, that there is no regulation in place for Foreign Exchange (Forex) Trading and Cryptocurrency offerings in St. Vincent and the Grenadines. These are speculative investments with considerable risks to the investor.

Members of the public are urged to exercise caution before engaging in any Forex Trading activities or accepting Cryptocurrency offerings….

[emphasis mine]

 

Source:  https://web.archive.org/web/20140618123554/http://svgfsa.com:80/warn.html

In the event that SVG FSA does begin to regulate these activities, this article may be updated. I do recommend FPA place a link to this article on all brokers review pages with SVG FSA regulation business registration.

#RegulatedFool

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Remember to study the  Before you complain to regulators  guide before reaching out.

Contact emails info@svgfsa.com
Contact forms https://svgfsa.com/contact/
Additional contacts Read below
Police Headquarters office.police@mail.gov.vc
Contact form http://rsvgpf.gov.vc/rsvgpf/index.php/make-a-report
Could be used to file cybercrime complaint (sections 12 [Computer related forgery] and/or section 13 [computer-related fraud] of the act)
Government Contact Directory  SVG official link   |  [FPA backup copy]
SVG cybercrime act 2016** SVG Official Link  |   [FPA backup copy]
Govt feedback forms #1 https://www.gov.vc/index.php/tell-us-what-you-think
Govt feedback forms #2 https://www.surveymonkey.com/r/SGC6HQS
Not official complaint channels, but you may let SVG gov’t know how satisfied you are with their service.

** thanks to @ScamReporters for pointing out this alternative method of reporting SVG scams.

Author Profile

4EverMaAT

4EverMaAT

4EverMaAT started trading derivatives since he was 18 years old, and found his way into forex over a decade ago and started developing automated trading systems to assist his leap into professional trading. This includes creating the worlds first (and only?) true coincident trend indicator: APAMI (Awesome/Amazing Price Action Measurement Indicator). No lag, no averaging. Just complex, measured price action made simple. Find out more at AwarenessForex.com.

MaAT is an ancient Kemetic phrase that translates to "Truth, reciprocity, balance". Obviously when a company or trader tries to scam their client/business partner out of money, this upsets the natural balance that exists when contracts are formed and traded. But the best way forward is not to be a helpless victim, but to ensure that you are informed with whom you are trading with. And more importantly, whom you are trusting your hard earned dollars with.

4EverMaAT couldn't help but notice that the scams that most people fall for are very similar day by day, month over month, and year after year. MaAT believes that less people would fall for scams if only they took some more responsibility for their own trading choices. This ultimately means resisting one's own gambling impulse and gathering hard evidence (video, screenshot, trading history, etc) of all relevant trading activity. And consolidating this evidence so that it creates a clear, concise timeline of events. More details are related at upcoming blog RegulatedFool.com

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Comments

Pharaoh
2 months ago,
Registered user
Great post! I'm tired of just referencing the memos about "sorry, but we don't regulate forex, binaries, or crypto" on their website. This puts all the info about how pathetic this pseudo-regulator really is all in one place.