Regulated institutions are best placed to ensure safety of people’s savings because they are demanded to act diligently in accordance with the set laws and regulations; offer a recourse to the regulator for consumer protection in case of complaints or irregular activity, and in the event of having to be closed and liquidated, there is a final recourse to the deposit protection fund for depositors in these regulated financial institutions.
As such, the public should not be duped into dealing with unlicensed and unregulated financial institutions that are in many ways disguised schemes to defraud the community. Members of the public should heed warnings or advice coming from agencies like Bank of Uganda regarding operations of certain investment schemes or institutions.