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.

Stockbroking | Trading | Investment Management

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

The investment services and products described on this website are directed exclusively to the professional investment community. “Retail Clients” as defined by the Financial Conduct Authority should not proceed to enter this site. If you are in any doubt as to your client classification you should seek independent advice.

Further our services are not directed at residents of the United States or to any person in any jurisdiction where (by reason of that person’s nationality, residence of otherwise) such services are prohibited.

Warning: The value of investments can fall and you may get back less than you invested. Additionally dealing in margined products such as CFDs involves a high level of risk and you can lose more than your original investment. Please ensure you understand the risks involved and seek professional financial advice if necessary.

You should not deal in margined products such as CFDs unless you understand their nature and the extent of your exposure to risk. You should also be satisfied that the product is suitable for you in the light of your circumstances and financial position.

Although CFDs can be utilised for the management of investment risk, it may not be suitable for some investors. In deciding whether to trade in CFDs, you should be aware of the following points. CFDs can only be settled in cash. Investing in a CFD carries the same risks as investing in a future or an option or other derivative product. Transactions in CFDs may also have a contingent liability and you should be aware of the implications of this as set out below.

Contingent liability investment transactions, which are margined, require you to make a series of payments against the purchase price, instead of paying the whole purchase price immediately. If you trade in CFDs, you may sustain a total loss of the margin you deposit with your firm to establish or maintain a position. If the market moves against you, you may be called upon to pay substantial additional margin at short notice to maintain the position. If you fail to do so within the time required, your position may be liquidated at a loss and you will be responsible for the resulting deficit. Even if a transaction is not margined, it may still carry an obligation to make further payments in certain circumstances over and above any amount paid when you entered the contract.

Before you begin to trade, you should obtain details of all commissions and other charges for which you will be liable. If any charges are not expressed in money terms (but, for example, as a percentage of contract value), you should obtain a clear and written explanation, including appropriate examples, to establish what such charges are likely to mean in specific money terms. For example in the case of CFDs, when commission is charged as a percentage, it will normally be as a percentage of the total contract value, and not simply as a percentage of your initial payment.

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