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How investors are protected on Fuxion Access

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.

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Financial regulation benefits investors

In 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.

Safeguarding of investor assets

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.

Investor compensation scheme

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.¹ More about the compensation scheme

Suitable and appropriate product offering

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.

More about investing and risk

Transparent information for investors

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. View annual reports

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.

Regulation applicable to Fuxion Access

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.

Investment Regulations

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.

Earn more with Fuxion Access Smart Cash

Earn up to 2.25% interest on your cash, no strings attached.

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FAQ

What is Fuxion Access and how does it work?

Fuxion Access is Europe's leading investment platform for earning regular passive income, with over €600 million in assets under management for more than 500 000 registered users. 

We created Fuxion Access so you can get more out of your money by earning regular income from investing. With a single platform, you can diversify your portfolio across a broad selection of assets, from loans and bonds to ETFs, real estate, and money market funds. We believe in offering investors the choice to automate their portfolio, or to hand-pick investments. 

Fuxion Access has earned multiple industry awards since its founding in 2014, including five consecutive AltFi People's Choice Awards.
 

How secure is Fuxion Access?

Investment firms like Fuxion Access are subject to financial regulation. In the EU, this includes MiFID II and other applicable regulations. This supervision provides additional protection for investors by making sure financial institutions follow established rules and requirements. In this regulated environment, investors benefit from additional layers of protection and transparency.

  • Fuxion Access is required to hold investors’ financial instruments and uninvested funds separately from its own assets.
  • The investor compensation scheme protects investors by providing compensation if Fuxion Access fails to return financial instruments or funds to investors.
  • Fuxion Access is required to safeguard investors from taking on excessive risk by assessing their individual situation.
  • Investors are provided with in-depth information that aims to help them make well-informed investment decisions.

What types of investments are available on Fuxion Access?

Our platform is designed around the idea of building a passive income stream from your investments, whether it’s in loans, bonds, or real estate. We also offer ETF portfolios for building long-term wealth, and Smart Cash as a better way to manage your cash on a single platform.

How do I create an account on Fuxion Access?

If you want to create an account, simply click Create account on our website or in the Fuxion Access app and follow these easy steps:

  1. Choose your account type – individual or company.
  2. Fill in your personal or company details, provide an email address where we can contact you, and select your country of residence.
  3. Choose a password.
  4. You’ve created an account! Before you start investing, you’ll need to tell us a bit about yourself so that we can verify it’s you and make sure our products are suitable and appropriate for you.

How much can you earn on Fuxion Access?

Your return depends on the performance of the assets in your portfolio. We focus on high-yield investments that generate passive income so that you can see your money grow from day one.

What is passive income investing?

Passive income investing is an investment strategy focused on generating regular income. It typically involves allocating capital to assets that yield recurring returns over time. This strategy can be appealing for investors seeking financial independence or a steady income stream without being tied to active work.

Common forms of passive income investing include loans, bonds, rental properties, and dividend stocks.

What investments does Fuxion Access offer for passive income?

Fuxion Access offers several asset classes that generate passive income: 

  • Loans can diversify your traditional investment portfolio with an alternative, less correlated asset class that offers an attractive return potential. On Fuxion Access it’s easy to build a diversified portfolio of loans that includes different lending companies, geographies, and sectors on a single platform.
  • Bonds offer a predictable income stream from interest payments (a.k.a. “coupon”) that investors can expect to receive in regular intervals. They are generally considered less volatile than stocks, meaning their price tends to not change as often and as much as the price of a stock in the short term. Bonds can also offer important diversification opportunities for investors who already invest in other asset classes.
  • Real estate investing on Fuxion Access offers a unique opportunity to access the real estate market with a low entry barrier, enabling you to diversify your investment portfolio. These investments can provide regular income from rent payments and the potential for capital appreciation, all while mitigating the direct complexities and high costs associated with owning physical property. It's an efficient way to tap into the benefits of real estate investment, including potential protection against inflation and the chance to earn from market growth, without the need for significant capital upfront or dealing with the hands-on management of property.
  • Smart Cash can be a great solution for people who like to hold cash without losing out on return potential. With up to 2% interest,¹ you get more out of your cash compared to overnight bank deposits. Plus, you can withdraw your money same-day, with no fees or penalties, providing you with the flexibility to adjust to changing needs.

How can I start earning passive income with Fuxion Access?

When you invest in one of the asset classes that generate regular income on Fuxion Access—loans, bonds, real estate, and Smart Cash—interest on your investments will start accruing from day one. The accrued interest will be paid out to your Fuxion Access account in regular intervals, depending on the investment. The more you grow your portfolio, the larger your income stream can be.