What Is License Monitoring Program (LMP)?

How to Check a Financial Company’s License Status on TrustFinance

In the online financial world, a “license” is one of the first things investors look at when evaluating a broker or financial company. But a more important question than simply having a license is:

• Is the license still valid?
• Has it expired?
• Does the information match the official regulator’s database?

To make this easier for users, TrustFinance developed the License Monitoring Program (LMP) — a system designed to verify and monitor the license status of financial companies based on official regulatory sources.

This article explains what LMP is, how it works, and how you should interpret license statuses when viewing a company profile.

What Is License Monitoring Program (LMP)?

License Monitoring Program (LMP) is a system used by TrustFinance to verify and monitor the regulatory license status of financial companies and display that status on the company’s public profile page.

LMP:

• Does not issue licenses
• Is not a business certification
• Is not investment advice

It is a license status monitoring system designed to improve transparency by checking license information against official regulatory sources.

Why Monitoring a License Matters More Than Simply Displaying One

Many companies can display license details on their own websites. However, displaying information alone does not confirm:

• Whether the license is still active
• When it was last renewed
• Whether it has been suspended or revoked
• Whether the details match the regulator’s official records

LMP helps reduce this uncertainty.

TrustFinance checks license information against official regulatory databases and updates the company’s profile status according to its monitoring cycle.

This creates an important distinction between:

Self-declared License
and
Verified & Monitored License

Understanding License Status on TrustFinance

When you visit a company profile on TrustFinance, you may see one of the following license statuses:

Active – License Is Valid

This means TrustFinance has verified that:

• The license matches the regulator’s records
• The license has not expired
• It is currently under monitoring through LMP

“Active” reflects the license status based on the most recent verification cycle.

Waiting – Entering a New Verification Cycle

This status means the license has entered a scheduled quarterly review cycle.

It does not indicate a problem.
It simply means the system is preparing to reconfirm the license details.

In-Progress – Under Review

This means TrustFinance is currently verifying the license information with the relevant regulatory authority.

Once the review is complete, the status will update accordingly.

Inactive – Not Currently Under Active Monitoring

This status may appear when:

• A company has uploaded license information but has not activated LMP
• The license failed verification
• The license has been revoked or downgraded by the regulator

An Inactive license is not currently being monitored under LMP as an active verified license.

Expired – License Has Expired Without Update

“Expired” means TrustFinance has confirmed through official sources that:

• The license has expired, and
• The company did not update or provide renewed documentation within the required timeframe

Currently, “Expired” may reflect either:

1. The regulatory license itself has expired
2. The monitoring status lapsed due to no action during the verification window

When a license is marked as Expired:

• It is no longer considered actively monitored under LMP
• Users should review additional information carefully
• The status reflects factual data from regulatory sources

How Does LMP Affect TrustScore?

TrustScore 2.0 is TrustFinance’s credibility rating system.

Its weighting structure is:

• 60% from user reviews
• 40% from license and security-related information

An Active license under LMP contributes to the 40% regulatory and security component.

However, LMP does not automatically increase a company’s score.
If user reviews are negative, the overall TrustScore may still be impacted.

LMP strengthens the regulatory transparency component — but it does not replace real customer experience.

What LMP Is Not

To avoid misunderstanding:

• It is not a government certification
• It is not a regulatory approval
• It is not investment advice
• It does not guarantee safety or profitability

LMP simply verifies and monitors license information based on official sources.

How Should Investors Use LMP Information?

License Monitoring Program is a transparency tool. It helps reduce uncertainty, but it should not be the only factor in your decision. Before investing, consider:

• TrustScore
• User reviews
• Company history
• Regulatory jurisdiction
• Product risk

Transparency improves clarity. Sound investment decisions require a broader evaluation.

Final Thoughts

License Monitoring Program (LMP) is designed to help investors see whether a financial company’s license is verified and monitored based on official regulatory sources. For users, LMP reduces uncertainty, adds context, and improves visibility into regulatory information. It does not replace due diligence, but it helps you make better-informed decisions.