Methodology · Regulator tiering
Which regulators we trust, and how much.
Not all regulators are equal. A licence from the SEC means something materially different from a licence from a small offshore commission, even though both attach the word “regulated” to a broker’s marketing.
The Beacon places every regulator we track into one of four tiers, plus a separate category for bodies that hold themselves out as regulators but are not. The tier affects how heavily we weight an authorisation, a fine, or a revocation when computing a firm’s Regulator Record score. An FCA fine pulls more weight than a VFSC fine — that is intended.
Tiering is the editorial judgement of The Beacon, reviewed continuously. A regulator’s tier may change over time as supervisory practice and enforcement record evolve.
Tier 1 — Top reputation
Highest-reputation regulators worldwide. Demanding licensing process, active supervision, robust enforcement record. Brokers licensed by these regulators face the strictest ongoing scrutiny.
- AFMAutoriteit Financiële Markten · websiteNL
- AMFAutorité des marchés financiers · websiteFR
- BaFinBundesanstalt für Finanzdienstleistungsaufsicht · websiteDE
- CBICentral Bank of Ireland · websiteIE
- CFTCCommodity Futures Trading Commission · websiteUS
- CONSOBCommissione Nazionale per le Società e la Borsa · websiteIT
- CySECCyprus Securities and Exchange Commission · websiteCY
- FCAFinancial Conduct Authority · websiteGB
- FINMAEidgenössische Finanzmarktaufsicht · websiteCH
- FINRAFinancial Industry Regulatory Authority · websiteUS
- FMA-NZFinancial Markets Authority (New Zealand) · websiteNZ
- IIROCInvestment Industry Regulatory Organization of Canada · websiteCA
- JFSAJapan Financial Services Agency · websiteJP
- NFANational Futures Association · websiteUS
- OSCOntario Securities Commission · websiteCA
- SECSecurities and Exchange Commission · websiteUS
Tier 2 — Reputable
Reputable regulators with credible supervision and enforcement. Lighter regime than Tier 1 in some respects (capital, reporting, conduct), but a genuine and meaningful authorisation.
- ASICAustralian Securities and Investments Commission · websiteAU
- CNMVComisión Nacional del Mercado de Valores · websiteES
- CSSFCommission de Surveillance du Secteur Financier · websiteLU
- DFSADubai Financial Services Authority · websiteAE
- FSC-MUFinancial Services Commission (Mauritius) · websiteMU
- KNFKomisja Nadzoru Finansowego · websitePL
- MASMonetary Authority of Singapore · websiteSG
- MFSAMalta Financial Services Authority · websiteMT
- SFCSecurities and Futures Commission (Hong Kong) · websiteHK
Tier 3 — Light regime / offshore mainstream
Lighter touch regulatory regimes, often jurisdictionally narrower in supervisory capacity. Still a real authorisation requirement, but materially less rigorous than Tier 1 or 2.
- CIMACayman Islands Monetary Authority · websiteKY
- FSA-SeychellesFinancial Services Authority (Seychelles) · websiteSC
- FSC-BVIFinancial Services Commission (British Virgin Islands) · websiteVG
- FSCAFinancial Sector Conduct Authority (South Africa) · websiteZA
- GFSC-GibraltarGibraltar Financial Services Commission · websiteGI
- JFSCJersey Financial Services Commission · websiteJE
- VFSCVanuatu Financial Services Commission · websiteVU
Tier 4 — Minimal supervision
Offshore jurisdictions with minimal supervisory capacity, low capital requirements, and limited enforcement action. An authorisation from these regulators provides little ongoing protection for clients.
Not a regulator
Markets itself as a regulator or oversight body but exercises no public-law supervisory authority. Membership or 'authorisation' from such a body should not be relied on as evidence of regulation.
- Financial CommissionThe Financial Commission (financialcommission.org)—
- Mwali / MISAMwali International Services Authority (claimed)KM
The tiering and the Regulator Record scoring formula it feeds into are an editorial product, not a credit rating within the meaning of EC Regulation No 1060/2009. The Beacon is not a credit-rating agency. The scores and tiers reflect our judgement based on public regulatory and enforcement records. See the disclaimer and methodology pages for the full position.
Disagree with a tier placement? Right of reply runs through info@enon.md — including from regulators themselves.