Within the term and conditions which one must read before opening an account with IB is the following:
C. Use of Another Intermediate Broker, Agent, Settlement Agent, or OTC Counterparty Outside of the United Kingdom: IB LLC may pass money, securities, or other assets held on Customer's behalf to another intermediate broker or agent, settlement agent, or OTC counterparty that also is located in a jurisdiction outside of the United Kingdom. In such circumstances, the legal, regulatory, and settlement regime applying to the intermediate broker, settlement agent, or OTC counterparty with which Customer's money, securities or other assets are held will be different from that of the United Kingdom (i.e., any client money and custody Rules promulgated by the FSA will not apply). Among other things, different practices for the separate identification of Customer's money, securities, and assets may apply, and, in the event of a default of the intermediate broker, settlement agent or OTC counterparty, the Customer's money, securities and assets may be treated differently from the position which would apply if such money, securities and assets were held by an intermediate broker, settlement agent or OTC counterparty in the United Kingdom.
D. Submission and Disbursement of Funds:
(1) Funds to IB LLC: Customer agrees to submit all funds related to any Transaction or to Customer's account or otherwise made pursuant to this Agreement (including, but not limited to, funds submitted to satisfy Margin Requirements) directly to IB LLC or to a designated financial institution with which IB LLC maintains an account, in accordance with the instructions then set forth on the IB UK website and in effect. IB UK reserves the right to amend such instructions, in its sole discretion, at any time, upon notice made by posting the amended instructions on the IB UK website.
(2) Third Party Funds: IB LLC may accept funds from third parties other than Customer for deposit into IB UK Customer accounts in accordance with IB UK's "Policies and Procedures to Detect Money Laundering." In such cases, Customer represents that such funds belong to Customer and that Customer has directed that such funds be deposited into Customer's account. Customer represents that no third parties have any beneficial ownership of the funds in Customer's account and that Customer is not trading on behalf of third parties, unless Customer has notified IB UK, in writing, to the contrary pursuant to Section 23.E of this Agreement and provided that Customer is properly registered and/or authorized under Applicable Regulations to conduct such trading.
Am I right in thinking that if I were to sign this I am giving IB the authority to place my deposited funds anywhere outside the Uk where they may not be afforded the protection offered under the FSA compensation scheme if the company were to go ****up?
Sean
C. Use of Another Intermediate Broker, Agent, Settlement Agent, or OTC Counterparty Outside of the United Kingdom: IB LLC may pass money, securities, or other assets held on Customer's behalf to another intermediate broker or agent, settlement agent, or OTC counterparty that also is located in a jurisdiction outside of the United Kingdom. In such circumstances, the legal, regulatory, and settlement regime applying to the intermediate broker, settlement agent, or OTC counterparty with which Customer's money, securities or other assets are held will be different from that of the United Kingdom (i.e., any client money and custody Rules promulgated by the FSA will not apply). Among other things, different practices for the separate identification of Customer's money, securities, and assets may apply, and, in the event of a default of the intermediate broker, settlement agent or OTC counterparty, the Customer's money, securities and assets may be treated differently from the position which would apply if such money, securities and assets were held by an intermediate broker, settlement agent or OTC counterparty in the United Kingdom.
D. Submission and Disbursement of Funds:
(1) Funds to IB LLC: Customer agrees to submit all funds related to any Transaction or to Customer's account or otherwise made pursuant to this Agreement (including, but not limited to, funds submitted to satisfy Margin Requirements) directly to IB LLC or to a designated financial institution with which IB LLC maintains an account, in accordance with the instructions then set forth on the IB UK website and in effect. IB UK reserves the right to amend such instructions, in its sole discretion, at any time, upon notice made by posting the amended instructions on the IB UK website.
(2) Third Party Funds: IB LLC may accept funds from third parties other than Customer for deposit into IB UK Customer accounts in accordance with IB UK's "Policies and Procedures to Detect Money Laundering." In such cases, Customer represents that such funds belong to Customer and that Customer has directed that such funds be deposited into Customer's account. Customer represents that no third parties have any beneficial ownership of the funds in Customer's account and that Customer is not trading on behalf of third parties, unless Customer has notified IB UK, in writing, to the contrary pursuant to Section 23.E of this Agreement and provided that Customer is properly registered and/or authorized under Applicable Regulations to conduct such trading.
Am I right in thinking that if I were to sign this I am giving IB the authority to place my deposited funds anywhere outside the Uk where they may not be afforded the protection offered under the FSA compensation scheme if the company were to go ****up?
Sean
