Safe Custody

Safe Custody of Clients’ Assets

All clients’ assets are held securely with our designated custodians, prime brokers or other regulated counterparties.

Our default instruction to our custodians, prime brokers and regulated counterparties is that all clients’ assets are held in fully segregated accounts.

The UK regulator of financial services firms has strict rules covering the conduct of firms authorised to hold and control clients’ assets.

In respect of those firms that we will introduce you to will be subject to the prevailing rules of the FCA and the following considerations:

1. FCA firms authorised to hold and control clients’ assets are required to carry out daily Financial Resource calculations to ensure the firm has adequate regulatory capital at all times.

2. Segregation of client funds involves the firm placing Retail client funds in a client money account separate from the firm’s own money. In the event of default by the firm, segregated funds are held for our clients and debts of the firm cannot be paid with those funds. Similarly, should the firm’s bank account become overdrawn, the bank cannot use client funds to reduce the overdraft. Note: segregation of client money from the firm’s money does not protect the client if the bank that holds the client money bank account goes into administration.

3. By the end of each business day the firm must rebalance their segregated funds accounts to ensure that the liquidation value of each client’s account, as at midnight that day, is fully segregated. 

4. Finally in the unlikely event that a firm was to go into liquidation and there was to be deficiency in the client money bank account, individual clients are covered by the Financial Services Compensation Scheme (FSCS). The maximum FSCS payout per client if the firm goes into default is £50,000. In certain circumstances a firm may hold insurance to cover excess losses that are not covered by the FSCS subject to disclosed limits. Where such insurance applies we will advise you of the policy and the cover provided.

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Issued by The London Trading Company (UK) Ltd which is authorised and regulated by the Financial Conduct Authority. FCA No. 678985