Overview

  • All client money is held in segregated client bank accounts in accordance with the FCA's client money rules
  • All money held on behalf of clients is kept in top-tier banks
  • Retail client funds are protected by the FSCS up to £50,000

Segregated Funds

Client money is held entirely separate from Company's own money, ensuring that in the unlikely event of default by Company, client funds will be returned to the clients rather than being treated as a recoverable asset by general creditors of Company.

The money is 'ring-fenced' in separate bank accounts which are held in trust with the clients as the beneficiaries, and is not held with Company's own funds.

Are my funds held on a segregated basis?

When a client opens an account with Company, they will be categorized as either: a retail client, a professional client or an eligible counter party - and Company will inform them of this categorization. All client funds will be segregated in separate accounts with our bankers, as per the Financial Conduct Authority (FCA) rules concerning client money.

How are my funds protected

Funds transferred from an individual client to Company will be received directly into a segregated client bank account. Company does not pass client money to any part of the business as working capital. Company has no exposure to corporate or sovereign debt. Company is debt-free, with substantial liquidity and capital reserves significantly in excess of regulatory requirements.

What happens if Company goes into liquidation?

In the unlikely event Company goes into liquidation, clients whose funds are held in segregated accounts will have their share of the segregated money pool returned, minus the administrators' costs in handling and distributing these funds. If there is a shortfall than retail clients will be eligible for compensation from the Financial Services Compensation Scheme.

More about the Compensation Scheme

Company clients would fall under the 'investments' claim category, whereby the cover is £50,000 per person per firm. If a client held an account with an authorized investment firm and there was a shortfall in segregation, they might still receive up to £50,000 in compensation.

The Financial Services Compensation Scheme (FSCS) is the UK's compensation fund of last resort for customers of authorized financial services firms. If a firm becomes insolvent or ceases trading, the FSCS may be able to pay compensation to its customers. The FSCS covers business conducted by firms authorized by the FCA.

Any losses would be shared by clients in proportion to their share of the total amount held with a bank which has failed. In the UK, any funds lost as a result of this would be covered by the FSCS under the 'banks/building societies' claim category, up to a limit of £75,000 per person per institution.

Additional Safeguards

Company' client money management and compliance with FCA rules are audited annually by our statutory auditors, and then reported to the FCA.

Company is also required to file a monthly Client Money & Assets Return to the FCA,. The purpose of the Return is to ensure that the FCA receives regular and comprehensive information from a firm which is authorized to hold client money on behalf of its clients.