A month after the Texas State Securities Board took action against Mirror Trading International (MTI), the South African Financial Services Conduct Authority (FSCA) is also investigating the company’s trading activities.
According to information shared with the FSCA by MTI, the company is conducting high-frequency derivatives trading using robots on behalf of its clients.
The FCA said in a statement that MTI’s current business model requires it to be licensed but apparently not licensed.
FSCA’s biggest concern was that MTI was promising its customers a monthly revenue of up to 10%. They stressed that this is far-fetched and unrealistic.
While the company claims it has more than 2.9 billion South African rand (~ $ 168 million) in customer funds in trading accounts, the FSCA said it was concerned about whether the funds were actually there.
The FSCA has warned people against using MTI’s services, claiming that it does not have the mandatory operating license and advised their existing customers to apply for an immediate refund.
To make their suspicions against MTI even clearer, the FSCA referred to a public statement by the MTI FX Choice broker, in which the legality of the services and the trading volume claimed by MTI were disputed. The regulator said it was in the process of receiving confirmation of these claims.
The organizer said it is reviewing the information and will contact the South African police service as soon as it can confirm the inconsistencies.
In July, MTI said it had discussed with the FSCA and was working on regulatory compliance. It also said it would look into the United States Texas Securities Commission regarding the suspension and suspension of the Texas State Securities Board.