Client Money Protection
We protect our clients' money, holding 100% of client money – including net unrealised profits/losses – in trust accounts with banks licensed by the Monetary Authority of Singapore (MAS).
WHAT IS A TRUST ACCOUNT?
Funds deposited in a trust account are held on trust by IG for our clients. These accounts are designated as 'Trust Accounts' set up with Singapore banks.
Clients’ money held in trust accounts is segregated from IG's funds. This ensures that in the event of a liquidation of IG, client money held by IG would not be considered a recoverable asset by general creditors of IG. They would be segregated to be returned to IG's clients.
HOW ARE MY FUNDS PROTECTED WITH IG?
As required by Singapore regulations, IG deposits funds received from customers in trust accounts with banks licensed by the MAS no later than the business day immediately following the day on which the funds are received, or the day on which IG is notified of the receipt of such funds, whichever is the later.
IG uses only its own funds for hedging and does not pass client money to hedging counterparties or to any part of the business as working capital. IG does not initiate speculative positions in the market and has no exposure to corporate or sovereign debt. IG is debt-free, with substantial liquidity and capital reserves which exceed regulatory requirements.
IG also has a ‘Client Money Committee’ responsible for ensuring that client money regulations are adhered to across all IG Group entities, as well as reviewing and evaluating client money controls and procedures. The Committee meets fortnightly.
In addition, we have engaged PricewaterhouseCoopers LLP to conduct an independent review of our controls and procedures for client money calculation and segregation. By commissioning this report we have taken an additional step, over and above standard audit checks and our regulators’ reporting requirements. The report is freely available to clients – please email us if you would like a copy.
WHAT HAPPENS IF IG GOES INTO LIQUIDATION?
If IG were to go into liquidation, clients with funds held in trust accounts would have their share of the funds returned, minus the administrators’ costs in handling and distributing these funds and amounts owed by the clients to IG.
WHAT HAPPENS IF A BANK HOLDING CLIENT MONEY ON BEHALF OF IG GOES INTO LIQUIDATION?
Banks holding the trust accounts are only selected following a full risk assessment, to ensure that they meet the requirements of the MAS and IG’s own policy on banks holding client money.
It is IG’s policy that all banks holding client money must maintain an investment-grade rating. These banks are subject to an ongoing internal credit review process. Currently IG in Singapore has set up trust accounts with Singapore-based banks that are licensed and regulated by the MAS.
In the event that the Singapore-based bank goes bankrupt, client money held in the trust account will be treated as a liability of the Singapore bank and dealt with in accordance with applicable Singapore laws and regulations.
ARE THERE ANY ADDITIONAL SAFEGUARDS IN PLACE REGARDING CLIENT MONEY?
The procedures and controls implemented by IG to comply with MAS rules on protection of client money are audited annually by IG’s statutory auditors. IG is also required to provide the statutory auditor’s opinion on its compliance with the Singapore client money protection rules to the MAS.
IG Group Holdings PLC, the parent of IG Group, is listed on the London Stock Exchange and is a constituent of the FTSE 250 index. It has a current market capitalisation of approximately £1.67 billion and capital resources for the year ended May 2012 of £331.8m. An unrivalled balance sheet and adherence to London Stock Exchange's, the UK’s financial regulator's and Singapore’s MAS' rules afford clients the security, resources and stability of a multinational organisation.
|Client Money Protection|
|All client money is held in segregated trust accounts in accordance with the MAS’ client money rules|
|All money held on behalf of clients is distributed across several top-tier banks regulated by the MAS|
|IG only uses its own funds for hedging|
|IG does not pass client money through to hedging counterparties|
|IG is not an investment bank|
|IG does not initiate speculative positions in the market|
|IG has no exposure to corporate or sovereign debt|
|IG is regulated by the MAS|
|IG is owned by IG Group Holdings plc – a FTSE 250 company listed on the LSE|
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