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Regulations: Your money

We hold retail client funds in trust or the segregated client money bank accounts, which meets the requirements of the ASIC Client Money Reporting Rules and ASIC Regulatory Guide 212 ('Regulations').

Client Money

Key points

All retail client money is held on trust in the segregated client money bank accounts.

All money held on behalf of clients is distributed across a range of major banks which are regularly assessed against CMC Markets’ risk criteria

CMC Markets does not lodge retail client money towards margins with its hedging counterparties

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.

As a CMC Markets’ client are my funds secure?

CMC Markets is authorised and regulated by ASIC. As a result we are required to comply with the ASIC Client Money Reporting Rules and the Regulations. CMC Markets meets the requirements of the Regulations and clearly distinguishes retail client money from its own by holding retail client funds in trust or the 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.

How does CMC Markets keep my funds secure?

Funds deposited by retail clients will usually be received by CMC Markets in the segregated client money bank accounts. 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 the segregated client money bank accounts accurately reflect retail client assets.

As founders of the Australian Retail OTC Derivative Association, 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.

Where does CMC Markets hold client money?

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.

Are there any audits and controls in place to further safeguard my funds?

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.

What would happen to my money if CMC Markets goes into liquidation?

In the event of CMC Markets’ liquidation, retail clients whose funds are held on trust or in the segregated client money bank accounts. would have their share of money returned, minus the administrators’ costs in handling and distributing these funds.

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