Giambrone assists Group of Investors to Recover their Funds from OptionRally Financial Services Limited

It is no surprise with such complex and confusing financial regulations throughout Europe relating to financial activities that the consumer can easily be duped into believing that an investment broker is legitimate and adequately regulated, only to find that a smoke screen has been thrown up by a fraudulent broker.

OptionRally Financial Services Limited has been trading as a licensed and regulated platform since November 2013 when the company was granted a licence by CySEC. The company then set about creating a web of confusion for potential investors. OptionRally Financial Services Limited is European Economic Area (EEA) authorised and regulated in another EEA country that is able to offer certain products and services in the UK. 

Furthermore, the Financial Conduct Authority (FCA) granted Optionrally Financial Services Ltd. in March 2014 permission to undertake business in the UK as a credit/financial institution and also as an “Authorised service provider” in Europe in accordance with Markets in Financial Instruments Directive (MiFID).

However, there is a major flaw, as far as the defrauded investors are concerned, relating current UK legislation relating to binary options trading as binary options trading is classified as “betting” and not investing and therefore should be supervised by the Gambling Commission as opposed to the FCA, regardless of the fact that the European Commission believes that certain binary options are actually within the scope of MiFID and therefore should be regulated by the FCA rather than the Gambling Commission.

The issue for the defrauded consumer is that the UK Gambling Commission only regulates a broker that has remote gambling equipment located within the UK. If such remote gambling equipment is located outside the UK the binary options broker will not be regulated by either the Gambling Commission or the FCA. There is no cohesive approach to binary options trading in Europe, different Member States have different attitudes to these activities, some considering binary options trading to be a financial product others considering it to be gambling. Several EU Member States, including Cyprus, regard binary options trading to be within the scope of their transposition of MiFID financial instrument.

A binary options brokerage legally established and authorised in an EU country, as well as Norway, Lichtenstein and Iceland, (also entitled to do business throughout Europe via the European Economic Area (EEA)), can then open the door and do business in the UK by way of the “passporting” rules set out in the EU financial services directives for investment firms and credit and financial institutions. Clearly this created an opportunity for unknowing investors targeted by fraudulent brokers.

Giambrone is one of the few law firms with the capacity and weight to litigate against such financial institutions that is not prevented from doing so by conflict of interests. Giambrone acts on behalf of the defrauded investor to recover their lost funds.

If you have lost money with Optionrally Financial Services Ltd. and would like to recover your funds please complete the enquiry form on this page or contact clientservices@giambronelaw.com or telephone +44 (0) 207 183 9482