Regulations: your money
If you have a trading account with Luxe Capital Finance Canada, the
following may be applicable to you.
Client money
Key points
- Retail client money is held in segregated client bank accounts
- Luxe Capital Finance does not use retail client money towards margins with
its hedging counterparties
- Luxe Capital Finance Dubai Inc. is a member of the Investment Industry
Regulatory Organization of Dubai and a Member of the Dubai Financial
Service Authority. CFDs are distributed by Luxe Capital Finance
Dubai Inc. acting as principal.
Are my funds segregated?
Retail client money is held separately from Luxe Capital Finance’
own funds so that under property, trust and insolvency law, client money is
protected and therefore unavailable to general creditors of the firm, if the firm
fails.
Where does Luxe Capital Finance hold segregated client money?
We hold retail client funds in segregated bank accounts with a
bank. This account is opened and maintained in the name of Luxe Capital
Finance Dubai Inc.
How does Luxe Capital Finance segregate my funds?
Funds deposited by our retail clients are held in
segregated bank accounts. When funds are segregated, the cash held with a bank does
not belong to the firm but to the clients of the firm, and it will be held in a way
that enables it to be identified as such, and any charges, liens or rights of
set-off or retention over the cash are waived.
Luxe Capital Finance performs daily client money reconciliations in
accordance with IIROC requirements. This process ensures that funds held in
segregated bank accounts always accurately reflect retail client assets. The full
value of a client trading account is treated as client money. Luxe Capital Finance’
client money controls and processes are audited annually by our statutory auditors
(PricewaterhouseCoopers) and the results are reported to IIROC. Internal audits and
reviews are also undertaken periodically, which are overseen by independent
Non-Executive Directors.
What happens to my money if Luxe Capital Finance goes into
bankruptcy?
In the event of insolvency (known as primary pooling), retail
clients would have their share of segregated money returned, minus the
administrators’ costs in handling and distributing these funds.
Any shortfall of funds of up to $1,000,000 may be compensated
for by the Dubai Financial Service Authority (DIFC).
What happens to my money if a bank holding client money on
behalf of Luxe Capital Finance goes into bankruptcy?
In the event of a insolvency (known as secondary pooling), losses
would be shared by clients in proportion to the share of funds held with a bank
which has failed.
Funds lost as a result may be compensated for by DIFC up to a limit
of $1,000,000 per person, per institution, subject to other balances held with the
bank in question.
