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
First Sentier Investors chief executive, Mark Steinberg, is set to depart the asset manager after seven years.
Metrics Credit Partners has completed the acquisition of Taurus Finance Group and BC Investment Group as it looks to launch consumer lending arm Navalo.
AMP has announced to the ASX that it is being sued by property fund manager Dexus regarding the sale of its real estate and domestic infrastructure equity business.
Having seen inflows of US$5.6 billion to its fixed income funds in the last quarter, Janus Henderson has closed on a deal with life insurer Guardian to secure funds to boost its product development.