Washington, DC — In keeping with the U.S Commodity Futures Trading Commission’s (CFTC) attempts to safeguard Americans from fraud, 71 new names have been added to the RED list bringing the total number of companies on this list to over 11o.
The “Registration Deficient, ” now known as the red list which as established in September 2015 and supplemented in April 2016 contains the names of unregistered foreign entities that are believed to be soliciting and accepting funds from U.S. residents at a retail level for, among other things, trading in foreign currency (forex) and binary options. These companies are required to register with the CFTC but are not registered.
The CFTC asserts that registration does not provide guarantee against mismanagement or fraud by an otherwise unethical firm; however, registration does provide the public with an increased level of security and accountability. Registration limits the CFTC to only examine whether firms are in comply with Commodity Exchange Act, for example whether firms meet minimum financial standards as well as disclosure, reporting, and recordkeeping requirements.
Working in conjunction with the CFTC’s SmartCheckSM campaign, the RED list helps investors identify and protect themselves against illegal conduct. To read more, please click here.