Table of Contents
Introduction
Trust Investment is a network marketing company that has been doing business in Spain for a long time. The business advertises itself as being able to give its customers many ways to make more money by using different goods and services. On the other hand, recent warnings from the Spanish National Securities Market Commission (CNMV) have caused some people to worry about how the company is run. In this post, we’ll talk about the warnings that the CNMV has issued and the possible risks that are linked to the investments that Trust Investing offers.
What does it mean to “invest in trust”?
Trust Investment is a multilevel marketing company that says it can offer customers a variety of products and services that can be used as investment vehicles. The company does business in several countries, such as Spain, and has been doing so for a long time. Trust Investment says on its website that its goal is to “create a community of successful traders and investors who help each other get better and reach their financial goals.”
Some of the financial services that the company offers are trading in foreign currency, trading in cryptocurrencies, and trading in binary options. Trust Investing also gives its clients access to TI Markets, which is a trading platform. Through this platform, clients can trade stocks, indices, and commodities, among other types of financial assets.
The National Securities Market Commission of Spain has put out warnings
In January 2021, the Spanish National Securities Market Commission (CNMV) put out a warning about investments in trusts. The CNMV said that Trust Investing did not have permission to do business in Spain in any way that had to do with providing investment services or doing anything else related to securities. The CNMV also warned that Trust Investment was not registered as a business that offers investment services with the CNMV. Companies in Spain that offer investment services are required by law to register with the CNMV as an investment services company.
The warning from the CNMV brought to light several possible problems with the investment products that Trust Investing sells. According to the CNMV, Trust Investing’s investment products were hard to understand and full of risks. There was also a chance that customers could lose all of the money they had put in. The CNMV also said that Trust Investing’s business strategy and the investment products it offers are not clear.
Answer from Trust Investing
Trust Investing decided to respond to the warning from the CNMV by putting a statement on its website. In the statement, the company said that they were aware of the warning from the CNMV and that they were trying to follow the rules in Spain. The message also said that Trust Investing was committed to giving its customers opportunities to invest in a way that was both honest and fair.
Some risks could be involved with the investments that Trust Investing sells
The warning from the CNMV brought to light several possible problems with the investment products that Trust Investing sells. Among these risks are the following:
Lack of transparency
Due to the lack of transparency in Trust Investing’s investment products, customers may not fully understand the risks that come with using these products to make investments.
High level of risk
Trust Investing sells investment products that are hard to understand and have a high level of risk. Because these products are hard to understand and have a high level of risk, customers could lose all of the money they have invested.
In Spain, Trust Investing is not allowed to offer financial services, and the CNMV does not oversee any of the company’s activities. Trust Investing also isn’t allowed to offer investment services in the US.
Multilevel marketing
Trust Investing’s business model is based on multilevel marketing. This means that instead of selling investment products, the company makes money by recruiting new members. This is different from the traditional way of running a business, which is to make money by selling investment products. This way of doing business has been used in several fraudulent schemes in the past.
Investors may not be protected by a Spanish law if they invest in goods from Trust Investing and lose money or are scammed.
Conclusion
Trust Investing’s investment products are hard to understand and full of risks, so people who want to buy them should be very careful. With its multilevel marketing business model and lack of regulatory oversight and transparency on the part of the company, the company is a cause for concern about the possibility of fraud. Customers who have already bought products from Trust Investing are strongly encouraged to talk to a professional investor and think carefully about their options. The CNMV’s warning shows how important it is for regulators to keep an eye on the financial services industry and how important it is for investors to know as much as they can about their investments before making decisions about them.
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