Can a regulator really protect us? See this letter

Below is the reply from ASIC after I asked whether I can deposit money to a broker regulated by them for forex trading.
According to the reply, I'm confused if we can trust regulator and what they can do once there is an issue someday.

"
Thank you for your enquiry

We are unable to confirm or deny a complaint about a company. If we have any comments to make about a company the comments would be in the form of a media release. However it must be noted that media releases are generally only produced after a matter has been to court or after a complaint has been investigated if the matter is within our jurisdiction. For copies of media releases issued you can search our website at www.asic.gov.au/mr.

To assist you in making a judgment about a company that you are considering dealing with, go to ASIC Connect at www.connectonline.asic.gov.au. This site allows you to do free searches, and purchase paid searches, to obtain information about companies.

Please also refer to the information on our website at: http://asic.gov.au/for-business/your...and-companies/.
Due to the unique nature of each enquiry ASIC is not able to provide interpretations or recommendations specific to some enquiries or circumstances. If you require further information please seek independent advice through an ASIC registered agent, your accountant or solicitor.
Regards,
"

May I know why you are so silent?

First of all, just want to let you know that this is a forum. People are NOT obligated to always respond to your thread. People will only post an answer to your thread if they feel there is something that they want to say so it's perfectly normal that they are "silent" and not posting anything to answer your thread.

Second, regarding your question, the response that you have received from ASIC is in NO indication that you cannot trust the regulator. It is pretty much the standard procedure that every single reputable financial regulators follow regarding disseminating information on any companies registered with them although some regulators like the NFA/CFTC in the United States and the IIROC in Canada makes more information like past disciplinary history if any about a company registered with them more readily available on their website when you do a search in their database and ASIC makes you pay to get more detailed information in their database but other than that, NO regulators would EVER give you specific recommendations or advise as to whether to invest with a company or avoid them. That's a judgement call that you will have to make based on the information that you find.

Hope this helps you and good luck!

Amusing discussions. You are looking in a wrong place. Learn your indies.

Regulators regulate. They establishes rules to support standards of service and may ban companies which fail to live up to them from operating.

While it usually establishes uniform quality of offering in a marketplace, that does not offer any protection for your funds if any of the licensed companies fails.

Client money is protected not by regulators, but by compensation funds which may exist in a marketplace. Moreover these funds protect only "stupid' money. "Smart" money is supposed to take care of counter-party risks on its own.

Thank you both!