CMC Markets Regulation

CMC Markets Regulation review by miniforex.com forex experts, All you need to know about CMC Regulation, Read about CMC trading regulations in UK, Australia and Europe. For more information about CMC Markets Regulations visit CMC Markets review by ForexSQ.com fx website.

CMC Markets Regulation UK

CMC Markets Regulation information in UK and Europe listed below:

CMC Markets Regulation UK : CMC Markets UK Plc is regulated by the FCA, registration number 173730

CMC Markets Regulation Australia

CMC Markets Regulation information in Australia listed below:

CMC Markets Regulation Australia:

  • CMC Markets Asia Pacific Pty Limited is regulated by ASIC for the provision of derivative products, AFSL No. 238054.
  • CMC Markets Stockbroking Limited is regulated by ASIC for the provision of stockbroking services, AFSL No. 246381.

CMC Markets Asia Pacific Pty Ltd ABN 11 100 058 213, AFSL No. 238054 (the derivative product issuer), CMC Markets Stockbroking Limited, Participant of the ASX Group (Australian Securities Exchange) and SSX (Sydney Stock Exchange) and Chi-X (Chi-X Australia), ABN 69 081 002 851, AFSL No. 246381 (the stockbroking services provider) provides the financial products and/or services.

Are my funds segregated?

CMC Markets is authorised and regulated by the Financial Conduct Authority in the UK (FCA) which means we must comply with FCA client assets regulation, known as CASS.

When you open an account with CMC Markets you are classed as a retail client, unless you receive notification of another status and explicitly consent to ‘title transfer’ of your funds to CMC Markets.

Retail client money is held separately from CMC Markets’ own funds so that under property, trust and insolvency law, client money is protected and therefore unavailable to general creditors of the firm, if the firm fails.

Where does CMC Markets hold segregated client money?

European retail clients’ funds are pooled together and accordingly the treatment of funds across our European branches is the same. We hold retail client funds in segregated bank accounts with UK banks which include Natwest, Barclays, Lloyds and HSBC, and outside the UK with Ulster Bank in Ireland, Deutsche Bank in Germany, and HSBC in Poland and Spain.

This means that your money may not necessarily be held in your country of residence, and that UK rules will apply to all European client money.

How does CMC Markets segregate my funds?

Funds deposited by our European retail clients are held in segregated bank accounts. When funds are segregated, the cash held with a bank does not belong to the firm but to the clients of the firm, and it will be held in a way that enables it to be identified as such, and any charges, liens or rights of set-off or retention over the cash are waived.

CMC Markets performs daily client money reconciliations in accordance with FCA requirements. This process ensures that funds held in segregated bank accounts always accurately reflect retail client assets. The full value of a client trading account is treated as client money. Our two FCA regulated entities, CMC Markets UK Plc and CMC Spreadbet Plc, are required to file individual Client Money Asset Returns (CMAR) on a monthly basis with the regulator.

CMC Markets’ client money controls and processes are audited annually by our statutory auditors (PricewaterhouseCoopers) and the results are reported to the FCA. Internal audits and reviews are also undertaken periodically, which are overseen by independent Non-Executive Directors.

What happens to my money if CMC Markets goes into liquidation?

In the event of CMC Markets’ liquidation (known as primary pooling), retail clients would have their share of segregated money returned, minus the administrators’ costs in handling and distributing these funds.

Any shortfall of funds of up to £50,000 may be compensated for, under the Financial Services Compensation Scheme (FSCS).

What happens to my money if a bank holding client money on behalf of CMC Markets goes into liquidation?

In the event of a bank liquidation (known as secondary pooling), losses would be shared by clients in proportion to the share of funds held with a bank which has failed.

Funds lost as a result may be compensated for under the FSCS up to a limit of £75,000 per person, per institution, subject to other balances held with the bank in question.

Financial Services Compensation Scheme (FSCS)

Key points

Acts as a ‘safety net’ for clients of authorised firms
Offers up to £50,000 to eligible clients should an investment firm cease trading with a deficit in their segregated client money
Offers up to £75,000 to eligible clients should a client money bank fail
The FSCS is the UK’s compensation fund of last resort and was created on 1 December 2001, when the Financial Services and Markets Act 2000 came into force. The FSCS acts as a ‘safety net’ for clients of authorised firms (i.e. FCA regulated financial services firms such as CMC Markets).

Using the scheme does not cost you anything, but to qualify for compensation you need to be eligible according to the FSCS rules. Generally, the FSCS covers private individuals, as well as some small businesses.

CMC Regulation Information

Further information on the FSCS can be obtained from their website, www.fscs.org.uk or by calling the FSCS Helpline on +44 (0) 20 7741 4100 or 0800 678 1100.

CMC Trading Regulation review conclusion

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