UAE’s SCA warns against forged licenses by financial firms
Market authority says many companies found to have fake certificates to lure investors
Dubai. : The UAE’s Securities and Commodities Authority (SCA) warned on Sunday against financial companies that are using “false certificates” to mislead clients into thinking they are licensed.
The Authority warned investors against “fake offers” by these companies, and urged them to verify the license of companies offering investment opportunities. Investors can review the list of registered and licensed companies on the website of SCA or similar regulatory authorities such as the Central Bank of the UAE.
SCA said in a statement that some companies have been spotted stating on their websites that they are licensed by regulatory authorities in the UAE, but they were found unlicensed.
In many cases, these companies are fictitious entities, SCA said, carrying out financial fraud, and reaching clients through telephone calls, text messages, e-mails, and social media, among other means.
“These companies introduce seductive offers, promises to earn high returns, and to get rich quickly, and these claims are backed by forged documents and certificates of licenses,” the market regulator warned.