We hold retail client funds in trust or segregated bank accounts, which meets and exceeds the requirements of the Australian Client Money Rules and ASIC Regulatory Guide 212 ('Regulations').
CMC Markets is authorised and regulated by ASIC. As a result we are required to comply with the Australian Client Money Rules and the Regulations. CMC Markets meets and exceeds the requirements of the Regulations and clearly distinguishes retail client money from its own by holding retail client funds in trust or segregated client bank accounts, entirely separate from CMC Markets’ own money. Treating retail client money in this way ensures that in the event of CMC Markets becoming insolvent, funds held in these accounts will be returned to clients, minus the administrators’ costs in handling and distributing these funds, instead of being treated as recoverable assets by general creditors of CMC Markets.
Funds deposited by retail clients will usually be received by CMC Markets in a segregated bank account. After this point, the full value of the client trading account is treated as client money and an equivalent amount is maintained in a segregated trust bank account.
CMC Markets performs daily client money reconciliations in accordance with Regulation requirements. This process ensures that funds held in trust or segregated bank accounts accurately reflect retail client assets.
CMC Markets uses its own funds for hedging and does not pass retail client money to hedging counterparties or to any part of the business as working capital.
CMC Markets uses a range of major banks to hold client money. These institutions are subject to regular and continuing risk assessment by CMC Markets.
Internal audits and reviews are undertaken periodically in order to ensure compliance with the regulatory requirements. This process also includes an internal audit, which is overseen by independent Non-Executive Directors.
In the event of CMC Markets’ liquidation, retail clients whose funds are held on trust or in segregated client bank accounts would have their share of money returned, minus the administrators’ costs in handling and distributing these funds.