The Financial Market Authority, FMA, is the main agency for financial regulation in Liechtenstein. It is an independent and non-segregated financial market supervisory authority that operates under public law. It regulates all financial market supervisors in Liechtenstein. In addition to that, the Financial Market Authority (FMA) is responsible for setting and enforcing financial regulations. It aims to encourage and assist the development of systematic, non-discriminatory and transparent financial markets. FMA mission As one of the main regulatory bodies in Liechtenstein, it is a part of FMA’s mission to ensure the stability of markets according to the legislative mandate. On top of that, FMA aims to protect clients and disallow abuses. It aspires to create a balanced financial system where marketsread more
Global Regulatory Entities
Why is broker regulation important to you as a trader?
The forex market is a giant. Almost 5 trillion dollars’ worth of transactions happens daily.
With the size this big, you need regulatory protection.
You don’t want unregulated brokers to put your deposit and profits at risk when it comes to withdrawal time.
So, how can you achieve protection?
Simple, by trading with the regulated forex broker.
When you trade with the regulated broker, it adds multiple layers of security.
If a broker meets all of the key conditions and obtains a license from the regulatory body, it signifies that the broker follows standards.
One of the major concerns when trading with unregulated forex brokers is that they are not required to adhere to any recognized standards.
You can’t rule out unethical or illegal activity. If something goes south, you can’t do anything about it.
When choosing a forex broker, you need to take the first step as a trader to check the broker’s regulations.
After all, you wouldn’t give someone claiming to be authentic thousands of dollars, would you?
You might be thinking, “How can I choose a regulated broker”?
Well, it’s not that difficult. Several regulatory bodies help you differentiate regulated from non-regulated brokers.
The most reputable forex regulatory bodies are FCA (Financial Conduct Authority) in the UK, ASIC (Australian Securities and Investments Commission) in Australia, and NFA (National Futures Association) in the US.
Take your time when selecting a broker.
Don’t get caught by bonus offers and a flashy website.
Want to know if your broker is regulated? Just search your chosen broker on the below-mentioned listed regulatory bodies’ websites.
The Financial Supervisory Commission, FSC, is an independent authority body in Taiwan. Taiwan’s financial services and industries are regulated by this government agency. In addition to determining financial policy, it drafts regulations with which it protects the entire financial industry. In addition, this body is also responsible for managing financial examinations and supervising financial institutions. The FSC issues regulations governing financial services on a general basis. The Banking Bureau regulates regulatory banks in collaboration with the Financial Services Commission. The Examination Bureau is also responsible for financial inspections and audits of the financial institutions subject to FSC regulation. Taiwan’s central bank, the Central Bank of the Republic of China (Taiwan), regulates credit policies and monetary services. In addition to managingread more
JFSA, the Japanese Financial Services Agency, is a regulatory body that ensures the financial stability of Japan. Japan’s Financial Services Agency was established by the Financial Reconstruction Commission in 2000 as a regulatory body. Besides, it was originally developed as an administrative wing of the Prime Minister’s office in 1998. However, before the reorganization by the FRC, The FSA was only responsible for regulating private financial institutions. It is Japan’s primary financial regulator and includes a duty to combat money laundering and terrorism financing. Tokyo is the headquarter of the FSA, whose commissioner is directly responsible to a ministerial team and Minister of State for the financial services of Japan. Whereas Japan has several FSA offices located in the localread more
The National Securities Market Commission (CNMV) is a regulatory body that inspects and supervises the Spanish securities market. In addition, they supervise all activities associated with those markets. In 1988, the CNMV Regulatory body was established under the supervision of Securities Market Law. Securities Market Law, a significant part of the financial system, also introduces new measures to protect investors. Through prudential supervision, CNMV often makes the transaction system secure enough for both old and new investors. All the securities are assigned with the ISIN codes, which are located in Spain. Different international organisations are also associated with CNMV to run the financial system powerfully. The main aim of CNMV CNMV’s main goal is to ensure fairness and transparency inread more
PRA stands for Prudential Regulation Authority. It works as a regulatory and supervisory authority within the Bank of England. It supervises and regulates building societies, banks, insurers, major investment firms, and credit unions. They have their standards by which they supervise all financial institutions within each firm. Currently, the PRA regulates more than 1,500 financial institutions. Main objectives of PRA regulatory entity The primary objectives of PRA are: They fully support a high level of protection for insurers and policyholders, facilitating competition among numerous firms. Banks play a crucial role in protecting and enhancing the stability of the UK financial system. There are a couple of statutory requirements as well that pertain to the threshold conditions. First, all firms mustread more
The Social Islamic Bank Ltd (SIBL) is a top-leading and renowned second-generation commercial bank operating since 22nd November 1995. This bank has a working system that is based on general rules and basic Sharia Principles. It now has more than 135 branches in different parts of the world. Plus, they also run two subsidiary companies, which are SIBL Securities Ltd. & SIBL Investment Ltd. The whole payment system of the bank is being run through the BACPS, BEFTN under the BACH. This is merely to boost the growth of the businesses in multiple dimensions. By adopting the BACH system, SIBL is guaranteed safety, high security, and performing quick transactions from one end to another. Apart from that, the bank isread more
Currently, the Financial Conduct Authority (FCA) regulates the financial services industry in the UK and oversees the country’s financial markets. In the FCA, the team aims for honest, fair, and inclusive markets that benefit individuals, businesses, consumers, and the economy at large. The authority aims to meet these objectives by protecting consumers, ensuring the stability of financial markets, and encouraging competition. The FCA is under the direction of the UK, which is a division of Parliament. Understanding the FCA In addition to its strategic goal, the Financial Conduct Authority (FCA) has three operational objectives. To accomplish these objectives, the UK financial sector must protect and enhance consumer protection, protect and enhance its integrity, and encourage healthy competition between financial serviceread more
Currently the there is no global authority overseeing the activities of the financial markets. Still, individual efforts from each country exist to figure out what is going on and which is the best way to control the financial activities related to Forex. However, this situation has started changing, and important regions of the world are making agreements about facing this reality. A notable example is the European Union promoting and already applying legislation such as the Markets in Financial Instruments Directive (MiFID). Dublin, an important financial centre of the world, Ireland companies, as a part of the European Economic Area, enjoy some benefits and are free to carry businesses to all the European Union. This situation led the Central Bank ofread more
In Poland, the Polish Financial Supervision Authority is in charge of the supervision of the financial market. It supervises banks, capital markets, insurance markets, and pension markets. Furthermore, it is also responsible for the supplementary supervision of financial conglomerates. It also supervises electronic money institutions, payment institutions, and payment service bureaus. Finally, it also regulates cooperative savings and credit unions. History Following the financial market supervision act of July 21 2006, the KNF came into effect on September 19, 2006. As a result of the Act, the new regulated body took over the responsibilities and regulatory powers of the Insurance and pension funds supervisory commission. In addition, the Securities and Exchange Commission of Poland is also involved. Following the secondread more
Financial Services Compensation Scheme FSCS is a compensation scheme based in the UK. They help protect any customer of a financial services firm that has failed. If a firm cannot pay claims against it and has failed, you can contact FSCS to help you compensate for your claims. FSCS is very easy to use. You can submit your claim through their online claims service, which is completely free to use. FSCS is operated independently of government and financial service agencies. FSCS services aim to increase the public’s market confidence and protect their customers. FSCS Mission FSCS aims to provide their customers with their rightful claims after the failure of a financial firm. FSCS will provide their customers with fast reimbursementsread more