How we deal with your money
We hold retail client funds in segregated accounts across a range of major banks, in accordance with the CySEC’s client money rules and MIFID’s requirements.
What happens to my funds?
Funds transferred from an individual client to ACFX will usually be received directly into a segregated client bank account.
If money from an individual client is received into a general ACFX account in error it is still considered to be client money from the time it reaches ACFX’s accounts and will be transferred to a client bank account.
ACFX 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. ACFX does not initiate speculative positions in the market. ACFX has substantial liquidity and capital reserves in excess of regulatory requirements.
Where does ACFX hold my funds?
All money held on behalf of clients is held in segregated accounts with a diverse range of top tier international banks.
What does segregated mean?
Segregated client money is held completely separate from ACFX’s own money, ensuring that in the event of default by ACFX, client funds will be returned to the clients rather than being treated as a recoverable asset by other general creditors of ACFX.
The money is ‘ring-fenced’ in distinct bank accounts which are held in trust with the clients as the beneficiaries, and is not mixed with ACFX’s own funds.
What is the Investor Compensation Fund and am I eligible?
The Investor Compensation Fund is a private legal entity established under the Investments Firms Law of 2002 and managed by an Administrative Committee. If a firm becomes insolvent or ceases trading, the Fund may be able to pay compensation to its customers. The Fund covers business conducted by firms authorised by CySEC.
ACFX clients who fall under the covered clients classification, whereby the cover is 20,000 Euros per person per firm. If a client held an account with an authorised investment firm and there was a shortfall in segregation, they might still receive up to 20,000 Euros in compensation.
Are there any additional safeguards in place regarding client money?
ACFX’s client money processes and compliance with CySEC directives are audited annually by its internal and external auditors, and then reported to CySEC. ACFX is also required to file a monthly Capital Adequacy report. The purpose of the submission is to ensure that our own funds, are at all times more than or equal to the sum of our capital requirements and in no case fall below the level of our initial capital.
- Client money procedure
All retail client money is held in segregated client bank accounts in accordance with CySEC directives and MIFID requirements.
All money held on behalf of clients is distributed across a diverse range of banks.
ACFX only uses its own funds for hedging.
ACFX does not pass segregated client money through to hedging counterparties.
ACFX is not an investment bank.
ACFX does not initiate speculative positions in the market.
ACFX is regulated by the CySEC.
Are my funds held on a segregated basis?
When a client opens an account with ACFX, they will be categorised as either a retail client, a professional client or an eligible counterparty – and ACFX will inform them of this categorisation. All individual client funds, irrespective of classification, will be segregated, in accordance with CySEC directives surrounding client money.
What happens if ACFX goes into liquidation?
If ACFX goes into liquidation, clients whose funds were held in segregated accounts would have their share of the segregated money pool returned, minus the administrators’ costs in handling and distributing these funds.
If there was a shortfall then individuals (and some smaller companies) may be eligible for compensation from the Investors Compensation Fund.
What happens if a bank holding client money on behalf of ACFX goes into liquidation?
Selection of banking counterparties will only take place once a full risk assessment has been undertaken, and all banks are monitored on an ongoing basis and fully reviewed semi-annually, to ensure that they continue to meet the requirements of CySEC’s regulations.
Any losses would be shared by clients in proportion to their share of the total amount held with a bank which has failed. In Cyprus, any funds lost as a result of this would be covered by the Deposit Protection Scheme, up to a limit of 100,000 Euros per person per institution.