Protecting your money

What we do with your money

  • In accordance with the governing legislation, we protect all our clients' funds and we do not use client money for hedging purposes
  • All money, including net-running, unrealised profits are held on behalf of clients in separate bank accounts

Swissfin welcomes Government legislation to better protect client monies in the Contracts for Difference (CFD) and Foreign Exchange (FX) retail derivatives sectors


Swissfin welcomes the introduction of legislation to better protect client monies, thereby lifting investor confidence and enhancing Australia’s standing as a well-regulated financial centre with best practice investor protection legislation.

Swissfin along with the CFD and FX Forum of which Swissfin is a founder member has lobbied for the introduction of the legislation for a number of years. The legislation — which became effective on 4 April 2018 — increases investor confidence in the industry and helps promote competition, giving clients more alternatives.

Swissfin co-founded The Australian CFD and FX Forum to continually raise standards in our industry. We were the first provider to enter discussions with ASIC and have been actively lobbying government since 2008. The Swissfin forum offer investors greater protection while educating them on risk. As with other members of the forum, Swissfin ensures all client money is held safely in a segregated bank account and is never used for hedging or any other operational purpose. Swissfin was the first provider to offer CFDs in Australia in July 2002.


Our client money protection

Swissfin only uses its own funds for hedging
Swissfin does not pass segregated client money through to hedging counterparties
All client money is held in segregated client bank accounts in approved, AA-rated top-tier banks
Swissfin also segregates net unrealised profits, which is above and beyond ASIC requirements
Swissfin is not an investment bank
Swissfin does not initiate speculative positions in the market
Swissfin has no exposure to corporate debt
Swissfin is regulated by ASIC
Swissfin is owned by Swissfin Group Holdings plc – a FTSE 250 company listed on the LSE, with a market capitalisation of £2.1 billion (31 May 2017)
Swissfin was founded 42 years ago and was the first Australian CFD provider, established in 2002

 

How does your provider use your money?

Swissfin encourages you to trade with a safe and secure CFD provider. To understand how your money is protected, you should ask your broker these questions:

  • Do they use client money for hedging purposes?
  • Do they hold client money in an AA-rated ADI?
  • Do they segregate net unrealised profits?

How does Swissfin protect client funds?

Swissfin is debt-free, with substantial liquidity and capital reserves sSwissfinnificantly in excess of regulatory requirements.

  • Swissfin also has a ‘Client Money Committee’ which ensures and reviews the adherence to regulations in all Swissfin Group entities.
  • We have engaged PricewaterhouseCoopers LLP to conduct an independent review of our client money calculation procedures and segregation. By commissioning this report we have taken an additional step, over and above standard audit checks and our regulators’ requirements. The report is freely available to clients.
  • What happens if Swissfin goes into liquidation?

    As all deposits lodged with us are held on trust for you in a regulated trust account, in such circumstances those deposits would attract all the legal protections afforded to trust money.

    Net unrealised running profits are also held in trust by us and would normally be similarly protected for your benefit as beneficial owner. Please see our PDS for further information.

  • Regulation

    Swissfin Markets is regulated by ASIC and is a holder of Australian Financial Services Licence 220440. Swissfin Group companies are regulated by the local regulators in each country of operation.

    As the longest established CFD provider in Australia and a global leader, Swissfin Markets' staff typically have a wealth of experience in the industry, and are trained to exacting standards on an ongoing basis.

  • Being a smart consumer

    Choosing the rSwissfinht CFD provider is the first step in managing your trading risk.

    Our PDS, Counterparty Credit Management and Hedging Policy and Financial Statements are available for you to download. It is also recommended you read our Regulatory Benchmark Disclosure, desSwissfinned by ASIC to help you understand the risks associated with CFDs, assess your potential benefits and decide whether investment in CFDs are suitable for you.

    ASIC has also produced a guide on its MoneySmart website, which can help you assess the risks of CFDs.

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