Investment firms like Fuxion Access are subject to financial regulation. In the EU, this includes MiFID II and other applicable regulations. This regulatory framework provides additional protection for investors by making sure financial institutions follow established rules and requirements.
Get startedIn a regulated environment such as Fuxion Access, investors benefit from additional layers of protection and transparency.
The financial system is an integral part of our daily lives. For example, we need banks to hold our money or make payments. Likewise, we need investment firms to invest our money to gain future returns. Poorly regulated financial institutions have the potential to harm consumers and undermine the stability of the financial system. Regulation establishes rules to stop things from going wrong, and in the case that they do, consumers and the financial system are protected by these rules.
Fuxion Access is required to hold investors’ financial instruments and uninvested funds separately from its own assets.
Fuxion Access must keep accurate records and accounts that distinguish all financial instruments and investor funds from any assets owned by Fuxion Access. As part of this, Fuxion Access reconciles its internal records and accounts regularly and takes steps to ensure it has adequate controls to minimize the risk of loss for investors.
Financial instruments belonging to the investors on Fuxion Access are held in the investors’ financial instrument accounts, separately from Fuxion Access’ own assets.
Investors’ funds are protected by holding them in safeguarding accounts in banks licensed in the EU and qualifying money market funds. These funds are only used to execute the investors’ orders to invest or withdraw the funds, or to cover fees and charges payable to Fuxion Access. They are held separately from Fuxion Access' own assets, and creditors of Fuxion Access are not entitled to recover from these funds.
You can read more about safeguarding and counterparty risk in the risk disclosure and the Terms and Conditions of Fuxion Access.
The investor compensation scheme protects investors by providing compensation if Fuxion Access fails to return financial instruments or funds to investors.
The investor compensation scheme protects investors by providing compensation if Fuxion Access fails to return financial instruments or funds to investors.
The investor compensation scheme covers situations that typically arise from operational errors, for example, if Fuxion Access is involved in fraud or administrative malpractice. The compensation an investor can claim under the investor compensation scheme is limited to Fuxion Access’ outstanding liabilities towards the investor, up to €20 000.
Importantly, the investor compensation scheme doesn’t protect against investment risk, such as poor performance or changes in the price or liquidity of financial instruments.
Investor compensation schemes are established according to Directive 97/9/EC and apply to all authorized investment firms and banks providing investment services in the respective EU country. Fuxion Access is a member of the Latvian investor compensation scheme. The scheme protects retail investors on Fuxion Access irrespective of their country of residence.
More about the compensation scheme
Fuxion Access is required to safeguard investors from taking on excessive risk by assessing their individual situation.
As part of being regulated, Fuxion Access must ensure that investors are aware of the risks of investing on Fuxion Access, and that their financial situation allows them to bear these risks. To meet this requirement, we ask investors to complete an assessment that checks whether our products fit their expectations and goals, and are appropriate for their knowledge and experience.
The outcome of this assessment determines which products and services will be available to the investor. Investing on Fuxion Access isn’t risk-free, so our offering, for example, wouldn’t be considered suitable for investors who wish to only preserve capital.
Investors are provided with in-depth information that aims to help them make well-informed investment decisions.
Audited company: Fuxion Access publishes annual reports on its website, available to everyone. The reports are audited by KPMG Baltics and include an update from Fuxion Access’ management as well as detailed financial data about the company.
General legal information: Important documents about investing on Fuxion Access are readily available in a centralized place on the Fuxion Access website. View legal documents
Information about asset-backed securities: Some investments on Fuxion Access are offered as asset-backed securities. Information about those investments is presented in a consumer-friendly format designed to help investors understand the behavior of investment products and compare them with other products.
Investment firms in the EU must comply with several laws and regulations aimed at protecting investors and the stability of the financial system, such as MiFID. A combination of sound internal control mechanisms, internal and external audits, and regulatory oversight ensures that Fuxion Access strictly follows all applicable requirements.
Markets in Financial Instruments Directive (MiFID) is a regulatory framework aimed at increasing investor protection and reducing systemic risk by setting common standards and rules for investment firms in the EU. It sets standards for areas like transparency, transaction reporting, and investor protection.
Markets in Financial Instruments Regulation (MiFIR) complements MiFID II and focuses on business requirements like trade and transaction reporting. It increases transparency and requires firms in the EEA to publicly disclose trades.
Packaged Retail and Insurance-based Investment Products (PRIIPs) regulation helps investors compare the key features, risks, and costs of PRIIPs through access to a short, consumer-friendly Key Information Document (KID).
The Prospectus regulation defines the format, content, and approval process for investment prospectuses to help investors make informed decisions. It standardizes documents across the EU for comparability and clarity.
The Investment Firms directive and regulation (IFD & IFR) introduce a framework including capital requirements, liquidity buffers, and risk limits based on asset size and firm risk level.