View the entire Frequently Asked Questions (FAQs)

Where is my money held?

Our partner Saxo Capital Markets (SCM) holds the client money in a ‘pooled’ client segregated trust account operated by operated by HSBC Bank Australia.

The Segregated Client Account is kept separate from SCM’s own money and assets. SCM does not at any point associate or mingle its own funds with client money held or invested in client segregated trust accounts, and vice-versa.

A portion of the client money is invested in a term deposit which is also designated as a client segregated trust account. All client segregated trust accounts are held at an Australian ADI (Authorised Deposit-taking Institution), and are in compliance with Australian client money laws and regulations.

SCM will not use Client A’s profits held in the client segregated trust account, to meet the margin obligation of Client B, or even the deficit balance of Client C. To ensure this, daily reconciliation is performed by back office to verify adequate funds always remain in client segregated trust accounts. Moreover, SCM does not use client money held in the client segregated trust account to hedge clients positions.

SCM client segregated trust accounts are all held and maintained in Australia, at no point does client money leave the Australian jurisdiction.

SCM parent company, Saxo Bank A/S headquartered and regulated in Denmark, does not have the power, access and control to withdraw client money out of client segregated trust accounts.

Transparency of Client Money (TOCM)

TOCM is a quarterly review on aggregated client money statements and client segregated trust accounts held with SCM, conducted by an audit firm, and delivered to the directors of Saxo Capital Markets.

The scope of the auditors review is based on the following:

•   Audit of internal controls and procedures in respect to Saxo Capital Markets’ handling of client monies;

•   Audit of physical cash deposited with Australian Authorised Deposit-taking Institutional (ADI);

•   Reconciliation of balance in clients’ trading accounts and the segregated trust bank accounts.

The report provided to SCM includes an overview of Saxo Capital Markets’ responsibilities for client money, the auditors responsibilities and inherent limitations, and a conclusion.

More information

To understand the counterparty risk associated with client money, refer to SCM Combined FSG & PDS under counterparty risks for client money. This will be available in the website of Saxo Capital Markets.

Also read the answers to the related questions:

•   Where are my securities held?

•   Can the money transferred by me, before you invest that money in ETFs, be used by you for your own purposes discreetly?

•   What are the advantages of Managed Discretionary Account (MDA) structure through which you offer your service?