LONDON (Reuters) - Britain's Financial Conduct Authority said on Thursday it had acted to stop Cyprus-based BDSwiss Holding from offering high risk contracts for difference products to consumers, amid a crackdown on risky products for casual investors.
BDSwiss played up the fact that one of its entities was regulated in Britain, when in fact 99% of consumers were taken on by one of its unauthorised overseas businesses, the FCA said.
"Many investors were attracted to the firm via social media accounts. Consumers should be very wary of those on social media making promises which look too good to be true and be careful where they invest their money," Sarah Pritchard, executive director for markets at the FCA said.
BDSwiss could not immediately be reached for comment.
(Reporting by Iain Withers, Editing by Lawrence White)