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Screenshot of a breaking news alert e-mail from Q2 2017
ActivTrades, global online broker authorized by the Financial Conduct Authority (FCA) has announced insurance on client accounts in excess of the FSCS insurance individually covered up to £500,000! The brokerage states they are proud to offer the security and peace of mind of insuring its clients’ funds above the threshold provided by the Financial Service Compensation Scheme (FSCS) which is set to only £50,000. ActivTrades is the first UK broker, authorised to hold client funds, to offer this cover.
This policy is underwritten by QBE Underwriting Limited and other participating syndicates at Lloyd’s of London and comes as standard, at no cost to you. Clients of ActivTrades are individually covered up to £500,000 as Excess of FSCS Insurance. ActivTrades on an individual bases can even increase the maximum amount covered according to your needs.
Read the official policy from ActivTrade’s website below:
What is the FSCS?
FSCS is a fund of last resort for customers of UK authorised financial services firms and provides protection if an authorised investment firm is unable to pay claims against it. For example:
When an authorised investment firm goes out of business and cannot return investments or money.
The FSCS only provides protection to retail clients who are eligible to claim under FCA COMP rules
Further information about the Financial Service Compensation Scheme (FSCS) and what they cover can be found on their website.
What is Excess of FSCS Insurance?
In addition to the protection afforded to the retail investor by the FSCS, ActivTrades has purchased, at no direct cost to clients, separate insurance protection from Lloyd’s of London insurers that provides additional coverage excess of the FSCS guaranteed £50,000 per customer.
This product is totally new to the market and ActivTrades is a leader in the UK in providing such additional and extensive protection direct to its customer base.
The ActivTrades Excess of FSCS Insurance policy is subject to Terms and Conditions and will respond only in the event that certain conditions are met.
How much insurance have ActivTrades bought?
ActivTrades have bought an aggregate limit of insurance that exceeds the exposed capital (client funds unprotected by the FSCS threshold of £50,000 per customer) that sits outside that protected by the FSCS up to £500,000 per client. Individual standalone covers beyond that sublimit of £500,000 can be arranged.
Does it cost me anything?
ActivTrades buy this policy for your benefit and there is no direct cost to you.
Who underwrites this policy?
This policy is underwritten by QBE Underwriting Limited and other participating syndicates at Lloyd’s of London. Lloyd’s of London is the world’s specialist insurance market. Lloyd’s is not a company, it is a market where the members join together as syndicates to insure risks. As at 31 December Lloyd’s was made up of 88 syndicates. The syndicates that underwrite the ActivTrades Excess of FSCS policy are QBE, XL, Markel, Apollo, Chaucer and Aegis. Lloyd’s business works by subscription, where more than one syndicate takes a share of the same risk. Lloyd’s of London currently has an A (Excellent) rating with “Stable Outlook” from ratings firm A.M. Best and an A+ (Strong) rating with “Stable Outlook” from Fitch Ratings and Standard & Poor’s. More information about Lloyd’s of London can be found at www.lloyds.com.
Who is covered?
Retail customers of ActivTrades i.e. those customers whose funds are held in segregated accounts only and who qualify under FCA COMP rules.
What is covered?
Only the eligible securities and cash of ActivTrades’ retail customers for the sole benefit of the customers. Investment performance or guarantee is NOT covered. Leveraged products are high risk, losses can exceed your initial deposit. It is important that you fully understand the risks involved, and seek independent advice if necessary.
How does it Work?
In the unlikely event that client assets are not fully recovered following the failure of ActivTrades, additional coverage may be available to provide protection above the FSCS limit of £50,000 per retail customer. The policy will respond providing the following triggers have been met:
- The FSCS declared insolvency of ActivTrades
- Discovery by the insolvency practitioner of a shortfall in segregated customer assets
- The FSCS paying the first £50,000 of each claim
How does this benefit me?
Those customers that deposit more than £50,000 with ActivTrades can now benefit from an insurance policy that protects their funds over and above the protection afforded by the FSCS. This product is new to the market and ActivTrades is the leader in the UK in providing such additional and extensive protection direct to its customer base. With ActivTrades your deposit is protected up to a sublimit of £500,000.
Which other brokerage firms are offering this protection?
This product is totally new to the UK and ActivTrades are leading the way in providing this additional protection direct to its clients. No other broking entity outside of the UK is able to provide such extensive protection for such a broad spectrum of trading activity.