Make Sure Your Money Is Safe !
A lot of clients, probably the majority, have no idea that when they use an FX Broker for their currency transfer that their money could be at risk if the Broker was to go in to liquidation. At the moment these foreign exchange brokers are not regulated by the financial services authorities (FSA) - amazing BUT true.
The norm with an FX Broker is that your money would be held in a segregated account where it is pooled with that of all other clients. Now if the FX Broker was to cease trading you are only covered for a maximum of £50, 000. So if you are transferring any amount larger than 50k you could potentially lose the excess !.
From November 1st 2009 new EU regulations will require most foreign currency brokers to become authorized by the FSA. But they will not be regulated immediately - they have two years to comply. There is a transition period until November 2011.
Firms that are approved as money-handlers by the FSA, can hold their clients money in trust, ring-fencing those funds against any claims should the firm go bust. Funds will then be safe from administrators.
In a world where all financial institutions are under scrutiny and where major companies have suddenly overnight become financially insolvent it obviously makes sense to make sure that your funds are safe with the Broker that you use. When approaching a Broker ensure they are FSA authorized. If they are then you can be certain that your money will be protected in the event of any insolvency. It’s a simple check but it could save you an absolute fortune.
We recommend Global Currency Exchange Network to all our clients.
From 1st November 2009 the new Payment Services Regulations (PSR) were put into force by the Financial Services Authority (FSA). The PSR require that non-bank payment service providers, such as GCEN, need to be either registered with or authorised by the FSA.
These regulations are designed, in part, to ensure customer protection. Authorised Payment Institutions, such as GCEN will be required to safeguard client funds they hold in relation to an electronic payment. They will also have to meet stringent criteria set by the FSA in terms of corporate governance, solvency and risk identification and management.
GCEN has been authorised by the FSA to continue payment services as an Authorised Payment Institution (PI). Reference Number: 504346
GCEN's HMRC Money Laundering registration Number 12137189
.
Back to Savings Tips
The norm with an FX Broker is that your money would be held in a segregated account where it is pooled with that of all other clients. Now if the FX Broker was to cease trading you are only covered for a maximum of £50, 000. So if you are transferring any amount larger than 50k you could potentially lose the excess !.
From November 1st 2009 new EU regulations will require most foreign currency brokers to become authorized by the FSA. But they will not be regulated immediately - they have two years to comply. There is a transition period until November 2011.
Firms that are approved as money-handlers by the FSA, can hold their clients money in trust, ring-fencing those funds against any claims should the firm go bust. Funds will then be safe from administrators.
In a world where all financial institutions are under scrutiny and where major companies have suddenly overnight become financially insolvent it obviously makes sense to make sure that your funds are safe with the Broker that you use. When approaching a Broker ensure they are FSA authorized. If they are then you can be certain that your money will be protected in the event of any insolvency. It’s a simple check but it could save you an absolute fortune.
We recommend Global Currency Exchange Network to all our clients.
From 1st November 2009 the new Payment Services Regulations (PSR) were put into force by the Financial Services Authority (FSA). The PSR require that non-bank payment service providers, such as GCEN, need to be either registered with or authorised by the FSA.
These regulations are designed, in part, to ensure customer protection. Authorised Payment Institutions, such as GCEN will be required to safeguard client funds they hold in relation to an electronic payment. They will also have to meet stringent criteria set by the FSA in terms of corporate governance, solvency and risk identification and management.
GCEN has been authorised by the FSA to continue payment services as an Authorised Payment Institution (PI). Reference Number: 504346
GCEN's HMRC Money Laundering registration Number 12137189
.
Back to Savings Tips
