- When you open a trading account with Pepperstone, we can assure you that your funds are in safe hands. There are a number of measures we implement so our clients put their trust in us to keep their money protected.
- Pepperstone is authorised and regulated by the Financial Conduct Authority (FCA), registration number 684312.
- Your money is held in segregated client bank accounts at regulated banks.
- All retail client money is distributed across major banks regularly assessed against Pepperstone’s risk criteria.
- Your money and assets will never be merged with Pepperstone’s own money and assets.
- Pepperstone does not use retail client money for hedging trades with other counterparties.
- All client money and assets are protected from creditors in the unlikely event Pepperstone goes into liquidation.
What does Pepperstone do with my funds?
Pepperstone is authorised and regulated by the Financial Conduct Authority (FCA). The FCA enforces strict client money and client asset rules which govern exactly what Pepperstone can do and how we must do it.
When you open an account with us you are immediately classed as a retail client, unless you receive a notification of another status and explicitly consent to a title transfer of your funds.
As a retail client, your money is held separately from Pepperstone’s own funds. Therefore under property, trust and insolvency law, your money is protected and unavailable to creditors of the firm, if the firm were ever to go into liquidation.
Where does Pepperstone hold my funds?
We hold retail client funds in segregated bank accounts at a number of main banks across the UK. In doing so, we ensure that money remains easily identifiable as the ‘client money’ and that Pepperstone and its creditors will never have any charge or retention over it.
What happens to my funds if Pepperstone goes into liquidation?
In the unlikely event of Pepperstone’s liquidation, our retail clients would have their share of segregated money returned, but with an administrators’ cost for handling and distributing these funds subtracted.
Funds lost as a result of liquidation, up to an amount of £85,000, may be compensated for under the Financial Services Compensation Scheme (FSCS). The FSCS acts as a ‘safety net’ for clients of FCA regulated firms, such as Pepperstone.
What happens to my funds if one of Pepperstone’s holding banks goes into liquidation?
If bank liquidation were to occur, the losses would be shared by clients in proportion to the share of funds held with that failed bank.
Any loss of funds as a result of this may be compensated for under the FSCS. The FSCS has a strict limit of £85,000 per person, per institution and this is subject to other balances held with the bank in question.
Financial Services Compensation Scheme
Pepperstone is a member of the FSCS, the UK’s compensation scheme.
The FSCS provides a ‘safety net’ for clients of authorised firms and eligible clients can claim
- Up to £85,000 should an investment firm cease trading with a deficit in their segregated client money.
- Up to £85,000 should a client money bank fail.
Using the FSCS will not cost you, however to qualify for compensation you must be eligible according to FSCS rules. Find out more.