Regulations: your money

If you have a trading account with CMC Markets Canada, the following may be applicable to you.

Client money

Key points

  • Retail client money is held in segregated client bank accounts
  • CMC Markets does not lodge retail client money towards margins with its hedging counterparties
  • CMC Markets Canada Inc. is a member of the Investment Industry Regulatory Organization of Canada and Member Canadian Investor Protection Fund.  CFDs are distributed in Canada by CMC Markets Canada Inc. dealer and agent of CMC Markets UK plc. CMC Markets UK Plc is regulated by the FCA, registration number 173730 

Are my funds segregated?

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?

We hold retail client funds in segregated bank accounts with a Canadian bank. This account is opened and maintained in the name of CMC Markets Canada Inc.

How does CMC Markets segregate my funds?

Funds deposited by our Canadian 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. 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 $1,000,000 may be compensated for by the Canadian Investor Protection Fund (CIPF).  More information on the nature and limits of coverage can be obtained at the CIPF website or by calling 1 866 243 6981

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)

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.

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

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