Do not check regulation by brand name alone
Start with the relevant legal entity identified in the official legal information, not just the brand name shown in advertising or on a website. The FCA explains that a trading name may differ from a registered company name, and that the way names are used can obscure regulatory status, permissions or legal structure.
Do not treat these as the same thing. Match them in sequence within the scope stated in the official documents.
Reading regulator, licence and registration terminology
Regulators use different terms, including authorisation, registration, licence and permissions. This article does not replace all of them with “licence”. The FCA Register uses terms such as authorised, registered and permissions; ASIC’s Professional Registers describe registered, licensed, status and conditions. Check the displayed term and the scope it applies to.
What to check in an official register
- Name of the relevant legal entity or organisation
- Licence, registration or other identifying number
- Current status
- Permitted services or permissions
- Conditions or restrictions
- Official contact details and website information
Steps for matching an entity name to register information
- Check the relevant entity name in the broker’s official legal information.
- Open the register through the regulator’s official website.
- Search by entity name or an officially stated number.
- Check that the displayed entity name matches the relevant entity.
- Read status, permissions and conditions using the source’s own terms.
- Check registration and conditions of use relevant to your place of residence separately.
Search screens and field names differ between regulators. Matching the relevant entity to the official record matters more than memorising the precise position of items on a screen.
Check status and permissions
Do not stop because a name appears in the results. Check the record’s status and the activities or services it covers. For appointed representatives, the FCA advises checking the activities allowed by the principal. ASIC identifies licence or registration status, conditions and the services the provider is allowed to offer as items to check.
Distinguish jurisdiction from the contracting party
Jurisdiction is the legal territory relevant to considering regulation and contracts. Do not infer the contracting party or availability where you live solely from a brand’s display language or your ability to access its website. Compare the broker’s legal information, contractual documents and the relevant regulator’s official information using the same entity name.
Regulation or registration does not mean complete safety
The CFTC explains that registration alone may not protect against fraud. Checking registration or authorisation is important, but it does not eliminate risks relating to market losses, counterparties, contractual terms, deposits and withdrawals, or the handling of funds.
Additional checks for residents of Japan
Japan’s Financial Services Agency explains that even an overseas provider needs Japanese financial instruments business registration when carrying on that business for or with residents of Japan. Check the FSA’s list of registered businesses separately from overseas regulators’ information. This article does not determine whether a particular contract is available or provide an individual legal assessment.
A beginner’s verification checklist
- Have you distinguished the brand name from the relevant entity name?
- Did you open the register through the regulator’s official website?
- Do the entity name and number match?
- Have you checked status, permissions and conditions?
- Have you separately checked registration and conditions of use relevant to your residence?
- Have you avoided treating regulatory information alone as proof of complete safety?
- Check the relevant legal entity, not just the brand name.
- Look at names, numbers, status and permissions in the official register.
- Read regulatory terms as they appear in the source.
- Regulation or registration does not guarantee the absence of losses or fraud.
Summary
When checking a broker’s regulatory information, distinguish the brand name, relevant legal entity, jurisdiction, regulator, status and permissions. From the next article, this method will be used to organise individual brokers’ official information by entity.
Frequently asked questions
Is a regulated broker completely safe?
No. Regulatory registration or authorisation is important to check, but the CFTC explains that registration alone may not protect against fraud. Check market losses, contractual terms and the handling of funds separately as well.
Can a broker’s name differ from its company name?
Yes. The FCA describes situations in which a trading name differs from the registered company name. Do not rely on the brand name alone; match the entity name in the official legal information to the name in the register.
Where can you check a licence or registration?
Use the relevant regulator’s official register. Check the entity name, number, status, permissions and conditions, and compare them with the relevant entity identified in the broker’s official legal information.