FX Broker Network Ltd is in the process of seeking authorisation from the Financial Conduct Authority. Details of how your funds will be protected under UK safeguarding regulations will be published here once we are authorised.
Information on How Your Funds Are Protected
FX Broker Network Ltd (“FXB”) is committed to protecting client funds and operating in line with applicable regulatory safeguarding requirements.
Safeguarding of Client Funds
All relevant customer funds are held in segregated safeguarding accounts, which are kept completely separate from FXB’s own operational capital and liquidity resources. These safeguarding accounts are maintained with approved banking partners and are used solely for the purpose of holding client money.
Funds are treated as “relevant funds” and safeguarded where:
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They are received in connection with an FX transaction where the settlement date is not on the same business day; or
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The payment date for the purchased currency is more than one business day in the future.
In these circumstances, your funds are fully segregated in accordance with regulatory requirements until the FX transaction is completed and the associated payment has been made.
Deposits and Margin for Forward Contracts
Where FXB requires a deposit or top-up margin in connection with an FX forward contract, these funds are held for FXB’s protection against the risk of non-settlement of the contract. As such, deposits and margin payments are not safeguarded, as they do not constitute relevant funds under the safeguarding rules. This is standard practice for forward FX transactions and will be clearly communicated to you at the time of booking.
What Happens if FXB Becomes Insolvent
FXB is not covered by the Financial Services Compensation Scheme (FSCS). Instead, client protection is provided through the safeguarding regime.
In the unlikely event of FXB’s insolvency:
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Safeguarded funds are legally separated from FXB’s own assets;
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These funds are held for the sole purpose of reimbursing customers;
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Safeguarded funds cannot be used to pay FXB’s creditors.
Please note that, in an insolvency scenario, safeguarded funds may be subject to costs incurred by an insolvency practitioner in the process of distributing funds back to customers.
Our Commitment to Transparency
FXB operates daily reconciliation and monitoring processes to ensure that all relevant funds are appropriately safeguarded at all times. We are committed to providing clear information on how your funds are handled and are happy to answer any questions you may have regarding safeguarding or the structure of your FX transactions.