Here’s how you can structure the explanation about who regulates Frai:
Via registers
Authorised firms must appear in the public register of the regulator of the country where they provide investment services. So, to check if a firm is regulated, you can access the public registers of investment firms set up by the regulators/national competent authorities (NCAs) of the EU/European Economic Area (EEA) member states below. The registers show you if the firm that you are in contact with or through which you are planning to invest your money has been authorised in the respective member states.
Additionally, ESMA provides a public register of firms that are authorised by the NCAs of the EEA/EU Member States.
Authorised firms must appear in the public register of the regulator of the country where they provide investment services. So, to check if a firm is regulated, you can access the public registers of investment firms set up by the regulators/national competent authorities (NCAs) of the EU/European Economic Area (EEA) member states below. The registers show you if the firm that you are in contact with or through which you are planning to invest your money has been authorised in the respective member states.
Additionally, ESMA provides a public register of firms that are authorised by the NCAs of the EEA/EU Member States.
It is necessary to choose a visual aid that is appropriate for the topic and audience.
How to use FRAI public register of authorised firms
By asking the person you are in contact with
If someone is trying to sell you an investment product or service, such as shares of a company or units of an investment fund, you should check out this person, for example, by asking: “Are you authorised to sell me this investment product?”
If you receive the reply that s/he is not authorised, then you should not buy anything and stop dealing with the person.
Unauthorised firms
Unauthorised firms try to avoid complying with the controls that legal, authorised entities are subject to, leaving investors totally unprotected. This means if you engage with an unauthorised firm you are not protected by regulation and you can lose access to crucial protections which have been created to help you, if things go wrong.
So, if you deal with an unauthorised firm, you can lose access, among others, to the following protections:
It is also helpful to check the Investor Alerts Portal of the International Organization of Securities Commissions (IOSCO). It gathers its members’ alerts and warnings about firms which are not authorised to provide investment services in their respective countries and are believed to have been targeting investors.
By asking the person you are in contact with
If someone is trying to sell you an investment product or service, such as shares of a company or units of an investment fund, you should check out this person, for example, by asking: “Are you authorised to sell me this investment product?”
If you receive the reply that s/he is not authorised, then you should not buy anything and stop dealing with the person.
Unauthorised firms
Unauthorised firms try to avoid complying with the controls that legal, authorised entities are subject to, leaving investors totally unprotected. This means if you engage with an unauthorised firm you are not protected by regulation and you can lose access to crucial protections which have been created to help you, if things go wrong.
So, if you deal with an unauthorised firm, you can lose access, among others, to the following protections:
- investor compensation funds: set up to protect you if an investment firm goes bankrupt and cannot pay back the money you invested through them in assets, such as shares or investment fund units.
- Financial Service Ombudsmen/-women: created to take care of complaints on behalf of consumers like yourself against firms.
It is also helpful to check the Investor Alerts Portal of the International Organization of Securities Commissions (IOSCO). It gathers its members’ alerts and warnings about firms which are not authorised to provide investment services in their respective countries and are believed to have been targeting investors.
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Fund Management
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