Regulations: your money
If your account is held with CMC Markets in the UK, the following is applicable to you.
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If your account is held with CMC Markets in the UK, the following is applicable to you.
Important information:
Retail client money is held in segregated client bank accounts.
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 UK plc (173730) is authorised and regulated by the Financial Conduct Authority (FCA) in the United Kingdom, which means we must comply with FCA client assets regulation, known as CASS.
Under the FCA's Client Money rules, we're required to segregate client money, and as a CMC Markets client, your money is held separately from CMC Markets' own funds in a segregated bank account with a regulated bank (unless you are a professional client and you agree with us otherwise). The funds held in segregated bank accounts do not belong to CMC Markets and will be held in a way that enables it to be identified as client money.
We hold retail client funds in segregated bank accounts with UK banks, which include NatWest, Barclays and Lloyds.
CMC Markets may place funds in notice or term deposit accounts, which require a notice period of up to 95 days for withdrawals. This does not in itself affect your ability to deal with or withdraw funds from your account with us on a day-to-day basis, however a longer notice period for withdrawals could result in a delay for some clients to receive back their money if CMC Markets goes into liquidation.
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 FCA regulated entity, CMC Markets UK plc, is 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.
In the event of CMC Markets’ liquidation (known as primary pooling), clients would have their share of segregated money returned, minus the administrator's costs in handling and distributing these funds.
In the exceptional circumstance that you are a professional client with a title transfer collateral arrangement in place with us, you will be treated as a general creditor in the event of CMC Markets' 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.
Key points:
Acts as a 'safety net' for eligible clients of authorised firms
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.