FXGlobe Ltd is a Cyprus Investment Firm (CIF) regulated by CySEC under license number 205/13. This CIF operates as a forex broker with the approved domain www.fxglobe.com. However, this CySEC license is apparently only a marketing platform for the unregulated activities of the FXGlobe Group through their various offshore companies. In recent weeks, both the Spanish CNMV and the Italian Consob have issued investor warnings and ordered blackouts of websites belonging to the FXGlobe Group. According to CySEC regulations, these offshore activities should not even be possible. But hey, this is Cyprus; this is CySEC.
Attacking Europe via offshore
The term “offshore” is misleading in this context. In fact, CySEC CIFs like FXGlobe are providing illegal financial services within the EU or EAA through affiliated offshore vehicles and partners. This is perfectly documented by other regulators’ enforcement actions such as FCA, CNMV, or Consob against CySEC-regulated investment firms. It is indeed the case that, according to CySEC regulations, ALL activities of a CIF must be reported to and/or approved by the Cyprus regulator. In fact, however, this provision is too often not complied with – as is the case with FXGlobe.
Andrew Saks has written a worthwhile reading article on this regulatory failure on Finance Feeds. FXGlobe‘s offshore approach is the rule rather than the exception with CySEC CIFs. They try to circumvent ESMA regulations and implement prohibited practices with EU investors. It might be advisable for CySEC to afford external advisors in this regard who are free of conflicts of interest and not prone to brown envelopes.
We recently published an initial analysis of the FXGlobe Group in connection with CNMV and Consob. In it, we highlighted the various brands and entities through which illegal financial services are offered. This includes
- FXGlobe Int (www.fxglobe.international) through FS International Limited, an entity registered in Vanuatu and “regulated” by the VFSC.
- this Vanuatu entity also operates the BMMC Investment site (www.bmmcinvestment.com), and until recently, the broker scam Streams a/k/a GoStreams (www.gostreams.io).
- They recently switched the Streams‘ operation to Streams Global Markets LLC in St. Vincent and the Grenadines.
Long story, short! The CySEC-regulated FXGlobe Group uses offshore vehicles and offshore regulators (who do not deserve the designation) to use them to attack investors in Europe.
We know that Israeli Erez Ventura, born in August 1973, is an FXGlobe Group principal, one of its beneficial owners, and the CEO.
More intel, please!
We would like to know more about FXGlobe and its related people, companies, brands, and activities. If you have any information or experience in this regard, we would be grateful if you could share it with us.
