At Saxo Capital Markets UK Limited (SCML) the safety and security of our clients' funds is of the utmost importance.
In accordance with the Financial Services Authority's (FSA) Client Money rules, all retail client funds (including cash balances, any unrealised profits and funds used as margin collateral) received by SCML are held in trust in one or more segregated bank accounts with the retail clients as beneficiaries. Consequently client funds are held separately from SCML's own money and cannot be used by SCML in the course of its day-to-day business operations.
In the unlikely event of a default by SCML, retail clients will have their funds returned to them from the client bank accounts rather than become unsecured creditors of the firm.
To ensure that the amount of money held in the client bank accounts accurately reflects the account value of our segregated clients, SCML performs a comprehensive daily reconciliation and on the basis of this reconciliation processes any and all necessary bank transfers.
SCML carries out comprehensive due diligence on the banks that it intends to hold client money with, not only when selecting the bank but also on an on-going basis. Banks are chosen, amongst other things, on the strength of their balance sheet, their credit rating and risk outlook.
As required by the FSA rules, SCML submits a monthly Client Money & Assets Return to the FSA and SCML's client money arrangements are audited by our independent auditor on an annual basis, with a copy of their report provided to the FSA.
Financial Services Compensation Scheme (FSCS)
The FSCS is the UK's statutory fund of last resort for customers of UK authorised financial services firms. This means that the FSCS can pay compensation if a member firm, such as SCML, is in liquidation and unable to pay client compensation claims against it, including where there is a client money shortfall. In the unlikely event there was a shortfall in the client money account, individual SCML clients would be able to claim up to a maximum of £50,000 per person from the FSCS.
If a bank holding client money goes into liquidation the losses would be shared by all clients in proportion to their share of SCML's overall client money position. In respect of a UK authorised bank, these losses would be covered by the FSCS up to a limit of £85,000 per person, per banking group for each individual SCML client.
Further information about compensation arrangements is also available from the Financial Services Compensation Scheme, 7th Floor, Lloyds Chambers, Portsoken Street, London E1 8BN. Alternatively, you can visit the FSCS website here.
If you have any further queries about the security of your funds please contact us on 020 7151 2000.