Regulations: Your money

We hold retail client finds in segregated bank accounts, which exceeds the requirements of the Financial Markets Conduct Regulations (2014) ('Regulations').

Client Money

Key points

  • All retail client money is held on trust in a segregated bank account
  • 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 only uses its own funds for hedging
  • CMC Markets does not lodge retail client money towards margins with its hedging counterparties
  • CMC Markets NZ Limited is regulated by the Financial Markets Authority ('FMA') for the provision of derivative products, FSP41187

As a CMC Markets’ client are my funds segregated?

CMC Markets is authorised and regulated by the FMA. As a result we are required to comply with the Regulations. CMC Markets exceeds the requirements of the Regulations and clearly distinguishes retail client money from its own by holding retail client funds in segregated bank accounts, entirely separate from CMC Markets’ own money. Segregation of 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 segregate my funds?

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 segregated client money bank accounts. ​​

CMC Markets performs daily client money reconciliations in accordance with Regulation requirements. This process ensures that funds held in 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.

Where does CMC Markets hold segregated 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.

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 in segregated client bank accounts would have their share of segregated money returned, minus the administrators’ costs in handling and distributing these funds.

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