SEC exposes scammer after mistaken call to regulator

Exposes new rogue operator ‘Gladius South Asia’

• Declares ‘Gladius South Asia’ is not licensed to operate as a market participant in Sri Lanka or any foreign jurisdiction
• Claims of being regulated by UK’s Financial Conduct Authority are false
• FCA has officially confirmed to the SEC that Gladius South Asia is not a registered or authorised entity in the UK

By Shabiya Ali Ahlam

The capital market regulator yesterday took the investor protection drive to a new level, this time by turning a scammer’s own sales pitch into evidence.

The Securities and Exchange Commission of Sri Lanka (SEC) yesterday released an audio recording of a caller attempting to lure clients into an “investment opportunity.” 

What the scammer wasn’t aware of was that the number he dialed belonged to an SEC official. Oblivious, he spent the call promoting a fraudulent platform directly to the regulator tasked with shutting him down.

The SEC made the recording public alongside a fresh warning against ‘Gladius South Asia’, and declared the entity is not licensed to operate as a market participant in Sri Lanka or any foreign jurisdiction. 

The watchdog added that claims of being regulated by the UK’s Financial Conduct Authority (FCA) were false. The FCA has officially confirmed to the SEC that Gladius South Asia is not a registered or authorised entity in the UK, where all financial services activity must be FCA-approved.

This is the second major crackdown by the SEC in less than a month. Just two weeks ago, the SEC publicly named ‘Blue Ocean Securities Ltd.’ as an unlicensed and unauthorised operator posing a direct risk to investors. The watchdog revealed the firm was conducting securities trading entirely outside the law, with its so-called Chief Analyst and Assistant not registered investment advisors. Blue Ocean Securities also does not appear on FCA’s Financial Services Register, a fact the SEC said underscores its lack of authorisation in the UK as well.

The regulator reiterated that investors must only transact through licensed stockbrokers and open a CDS account before trading. Lists of authorised brokers are available on the SEC and Colombo Stock Exchange (CSE) websites.