Yes I understand this Simon, but your new user T&C says differently and from what I understand LCG have the right to do whatever they like, in reference where to keep the client funds. What you say personal in a post in a post like this, is not legally binding is it? Please correct me if I totaly misunderstood the issue.
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Jack Hughes
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But you can if you want to?
Hmm. Just been reading about City Index's losses, which were apparently mostly caused by a handful of large-stake punters. I believe that Northern Rock and the other banks had no intention of going bust.
capitalspreads
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i think people are being a little odd about this
the wording is to fulfill regulatory requirements (which is why all the SB and broking companies in the UK use it). The fact is that all clients still have the regulatory insurance cover (i believe this is 48K) even if LCG did put the money outside the UK into an approved institution.
We cannot put client money into some bank in the BVI or Panama as these financial institutions would not satisfy the FSA's CASS requirements. The FSA is very aware of the obligations of financial institutions towards client money and LCG must ensure that sufficient seggegated funds are held in reputable banks to cover all client liabilities. This must be audited every single day to take into account client running profits etc.
Comments concerning our competitors are all very well but .... LCG has never made a loss, we do not allow clients to put at risk our financial stability which is one of the reasons why we insist on stop losses on all client positions. It is this policy that ensures comfort and security for all our clients.
Simon
the wording is to fulfill regulatory requirements (which is why all the SB and broking companies in the UK use it). The fact is that all clients still have the regulatory insurance cover (i believe this is 48K) even if LCG did put the money outside the UK into an approved institution.
We cannot put client money into some bank in the BVI or Panama as these financial institutions would not satisfy the FSA's CASS requirements. The FSA is very aware of the obligations of financial institutions towards client money and LCG must ensure that sufficient seggegated funds are held in reputable banks to cover all client liabilities. This must be audited every single day to take into account client running profits etc.
Comments concerning our competitors are all very well but .... LCG has never made a loss, we do not allow clients to put at risk our financial stability which is one of the reasons why we insist on stop losses on all client positions. It is this policy that ensures comfort and security for all our clients.
Simon
tar
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This is from your T&C : "
2.3 Your money may be held in an approved bank or with a third party outside the United Kingdom where the legal and regulatory regime applying to such bank or third party will be different from that of the United Kingdom and in the event of an insolvency or equivalent failure of that bank or third party, your money may not be as effectively protected as if your money were held in the United Kingdom. We will not be liable for the solvency, acts or omissions of any bank or other third party holding such money .
2.4 If, however, your money is held within the European Economic Area, a proportion of your money may qualify for compensation arrangements in that jurisdiction "
tar
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This quote is from the FSA :
" A firm must not hold client money in a client bank account outside
the United Kingdom, unless the firm has previously disclosed to the
client in writing:
(1) that his money may be deposited in a client bank account outside
the United Kingdom;
(2) that in such circumstances, the legal and regulatory regime
applying to the approved bank will be different from that of the
United Kingdom and, in the event of a failure of the bank, his
money may be treated in a different manner from that which
would apply if the client money was held by a bank in the United
Kingdom "
" A firm must not hold client money in a client bank account outside
the United Kingdom, unless the firm has previously disclosed to the
client in writing:
(1) that his money may be deposited in a client bank account outside
the United Kingdom;
(2) that in such circumstances, the legal and regulatory regime
applying to the approved bank will be different from that of the
United Kingdom and, in the event of a failure of the bank, his
money may be treated in a different manner from that which
would apply if the client money was held by a bank in the United
Kingdom "
capitalspreads
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tar
you are missing the point ... funds must be held in accordance with FSA client money rules ....we can do these things if we inform the client in writing AND the client agrees.
as we have not asked any clients to do this and i am pretty sure that they would not agree anyway, even if we asked, the point is rather moot.
simon
you are missing the point ... funds must be held in accordance with FSA client money rules ....we can do these things if we inform the client in writing AND the client agrees.
as we have not asked any clients to do this and i am pretty sure that they would not agree anyway, even if we asked, the point is rather moot.
simon
tar
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Yeah u did it according to the FSA rules i know , but you cannot say the funds has the same protection as if it was held in the UK check my FSA quote and your T&C as well ...
Could it be that your new account funds policy is legally only valid for new clients? I know ggmarkets did exactly the same thing, but with them you had to approve to the new account conditions, before actually being able to continue trading with them.
tar
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Not only new clients check this quote from CS T&C : " The following Terms and Conditions form the Agreement between you (the Client) and London Capital Group Ltd, which governs your contract with London Capital Group Ltd. This Agreement may be altered from time to time by London Capital Group by notice to you; such notice may take the form of an electronic message. If, subsequent to receiving this electronic message, you make any new opening trades, London Capital Group take this as acceptance of the new Agreement. If you do not accept any proposed change in this Agreement, you must inform London Capital Group Ltd who will reserve the right to close your account. In this eventuality London Capital Group will give you 7 (seven) days notice. "
capitalspreads
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oh god
this is like pulling teeth...We only put the change in the T&C's to keep up with regulatory requirements. If it had been up to LCG we would not have made any changes at all.
LCG keeps all its spread betting client money in the UK it has no intention of moving money out of the UK... period.. end of discussion.
I would have thought these comments might have been better aimed at some of our competitors who automatically placed clients in the non-segregated category (unless specifically reqested by the client to be segregated).
LCG do it the other way round where all client funds are segregated, automatically, unless LCG gets a signed letter from the client stating that they are happy for funds to be Non Segregated.
Simon
this is like pulling teeth...We only put the change in the T&C's to keep up with regulatory requirements. If it had been up to LCG we would not have made any changes at all.
LCG keeps all its spread betting client money in the UK it has no intention of moving money out of the UK... period.. end of discussion.
I would have thought these comments might have been better aimed at some of our competitors who automatically placed clients in the non-segregated category (unless specifically reqested by the client to be segregated).
LCG do it the other way round where all client funds are segregated, automatically, unless LCG gets a signed letter from the client stating that they are happy for funds to be Non Segregated.
Simon
tar
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Then u shouldnt put this in your T&C : " Your money may be held in an approved bank or with a third party outside the United Kingdom "
arabianights
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And if UK PLC ****s up do you want them to waste time getting your money out and safe?
tar
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maybe it will be safer with a third party outside the UK !
Jack Hughes
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Then let's hope LCG isn't diversifying into dentistry.
They are already into banking, so why not.
Simon, I can see by your replies that this is a sensitive issue. Transparency in this matter is very important. No need to beat around the bush, if LCG states in the T&C that the funds might be kept with a third party bank, this could very well be the case, and become a reality whenever it is convenient and of great benefit to LCG.
tar
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B
Black Swan
Guys this is just silly now, Simon is IMHO a good sport for putting up with as much as he does on this thread. Now this barrack room barrister stuff has surely reached it's pointless end. Have any of you got £100K on line with CS at any one time? Oh, don't tell me, you're fighting a crusade for *others* that may have issues and/or it's all relative
Ask something sensible, or get of his fookin back....as you were....
Ask something sensible, or get of his fookin back....as you were....
