How do you check if an investment firm is regulated?
Search the firm's name and reference number on the official public register kept by the financial regulator in your country. Check that its status shows it's currently authorised, that it has permission for the service it's offering you, and that its contact details match the ones you've been given.
Find the official register yourself
Most countries have a financial regulator that keeps a public register of the firms it authorises. Find yours through your government's official website, then go to the register by typing its address yourself. Don't follow a link sent to you by the firm, because scammers sometimes build fake copies of register pages.
Search by name and reference number
Most registers give each firm a unique reference or licence number. Search for both the firm's full legal name and that number, and make sure the result is the exact firm, not one with a similar name. If the firm says it's based in another country, check that country's register too, and whether it's allowed to offer its services where you live.
Check the status
Look for a current status such as 'authorised' or 'licensed'. Some registers also list smaller firms that work under a larger authorised firm, which takes responsibility for them; these are often called agents or appointed representatives. A status such as 'no longer authorised', 'cancelled' or 'revoked' means exactly that. Don't deal with it.
Check the permissions
The register lists what each firm is allowed to do, such as managing investments or arranging deals. A firm allowed to sell insurance isn't automatically allowed to manage your money.
Compare the contact details
Check the website, phone number, email address and postal address against what the firm has given you. If anything differs, assume it isn't the real firm until you've confirmed otherwise by calling the number on the register.
What is a clone firm?
A clone firm is a scam that pretends to be a real, authorised firm. It uses the genuine firm's name, address and reference number, so it looks legitimate when you check the register. The difference is in the contact details: the phone number, email or website lead to the scammers, not the real firm.
Clone firms are effective because they turn your caution against you. You do the sensible thing, search the register, find a match, and relax. Some go further, with professional-looking websites, documents carrying the real firm's logo and staff names taken from LinkedIn.
The fix is simple, though. Ignore the contact details the firm gives you. Use only the phone number and website shown on the register, and ask the real firm directly whether the person you've been speaking to works there. Many regulators give the same advice on their own websites, often alongside warnings about firms known to have been cloned.
What are the warning signs of a clone or scam firm?
The biggest warning signs are unexpected contact, pressure to decide quickly, returns that sound too good to be true, and contact details that don't match the register. Scammers also often ask you to pay into a bank account in a different name, or to send cryptocurrency, or to let them access your computer.
If two or more of these apply, stop and check before you do anything else. If it's a cold call, end it. A genuine firm won't mind you hanging up and calling back on the number from the register. Use a different phone if you can, or wait a few minutes first, because some scammers keep the line open and pretend to be the firm or your bank.
Many regulators also publish consumer pages describing the scams they're seeing now. Look on your regulator's own website, reached by typing its address yourself.
- They contacted you first. Out of the blue by phone, email, text or social media, especially after you've filled in an online form somewhere else. Some countries ban cold calls about certain investments or pensions outright, so an unexpected call is a red flag in itself.
- The returns are high and the risks sound low. Real investments with higher potential returns carry higher risk. Anyone who says otherwise is either mistaken or lying.
- There's pressure to act now. A bonus that expires today, a 'one-off' opportunity, or a manager who keeps calling back.
- The details don't match. A web address that's slightly different from the one on the register, a mobile number, or a free email account.
- The payment route looks odd. A bank account in a personal name or a different company's name, or a request to pay in crypto or by gift card.
- They want remote access. No genuine investment firm needs to take control of your computer or phone.
- They ask you to keep it quiet. Telling you not to discuss it with your bank or family is a classic scam tactic.
What is the regulator's warning list, and how do you use it?
A warning list is a public list of firms and individuals the regulator knows are operating without authorisation or running scams, including clone firms. Many regulators publish one on their own website. If a firm appears on it, don't deal with them. If it doesn't, that doesn't prove the firm is genuine.
That second point matters. Scammers set up new names and websites all the time, often faster than they can be added to any list. A clean result on the warning list only means the regulator hasn't flagged that name yet. The register check above is the one that tells you whether a firm is authorised.
Search the warning list by the firm's name, its website address and any phone number you've been given. Clone firms are often listed under the real firm's name with a note about the fake contact details, which is exactly what you need to see. The register entry for a firm that has been cloned may also carry a warning.
Should you check the company register too?
Yes, but understand what it tells you. Most countries keep an official register of companies. It shows that a company exists, when it was set up, who runs it and often whether it files accounts. It says nothing about whether the company is allowed to handle investments. That's what the regulator's register is for.
Search for the company on the official company register of the country where it says it's based, going there directly rather than through a link. Look for anything that doesn't fit the story you've been told. Examples: a firm claiming decades of history that was set up last year, directors who resigned recently, overdue accounts, or a registered address that's a mail-forwarding service.
None of those prove a scam on their own. But if you're already uneasy, they're good reasons to walk away. A genuine firm won't mind you checking, and won't rush you while you do.
What protection do you get from dealing with an authorised firm?
Dealing with an authorised firm usually gives you rights you don't get elsewhere. The details vary by country. They often include a formal complaints process with an independent ombudsman or dispute service, and rules on keeping client money apart from the firm's own. Sometimes there's a compensation scheme if the firm fails.
Before you invest, ask the firm which dispute-resolution service would handle a complaint it can't resolve, and whether a compensation scheme would cover you if it failed and up to what limit. Check its answers against its terms, its key documents and the regulator's own website. Limits, and what counts as covered, differ from country to country and change over time.
None of this applies if you deal with an unauthorised firm or a clone. Money sent to scammers is very rarely recovered. And even with an authorised firm, protection never covers normal investment losses when markets fall. Our trust page sets out what to ask about the managed portfolio.
What should you do if you think you've been contacted by a scam firm?
Stop all contact, don't send any money, and report it. If you've already paid, call your bank straight away on the number on the back of your card. Then report it to the police or your country's fraud reporting service, and to the financial regulator. Speed improves the chance of stopping a payment.
- Contact your bank first if any money has left your account. Banks can sometimes stop or recall a payment if they act quickly.
- Report the firm to the regulator in your country, usually through a scam reporting form on its website, so others can be warned.
- Report the crime to the police or the national fraud reporting service in your country. Keep a note of any crime reference number you're given.
- Keep the evidence. Save emails, messages, website addresses, call logs and payment details. Your bank and the police may need them.
- Change your passwords if you've shared any login details or allowed remote access to a device.
- Watch for recovery scams. Victims are often contacted again by people offering to get the money back for an upfront fee. That's usually the same scammers, or their associates.
How to check the provider and Dividonic yourself
The managed portfolio comes from the provider. Use the steps above to look that firm up on the public register of the financial regulator in your country, and check that the name, website and phone number match. Only open an account through the website listed there. Dividonic introduces customers and doesn't hold or manage money.
Our trust page sets out who runs Dividonic, how we're paid, and the provider's details for you to compare. How it works sets out exactly who will contact you and when. If anyone claiming to be from Dividonic or the provider contacts you without being asked, pushes you for a decision, or asks for passwords or remote access, end the conversation and email hello@dividonic.com.
And if you're not yet sure you want to invest at all, you don't need to check anyone. Start with our checklist before you invest.