foredog
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Intermediate customers
Applicants can be classified as an intermediate customer on the basis of their understanding and experience in the relevant designated investments. As a consequence of this classification, you will lose the protections afforded to private customers under the rules of FSA for your Simple CFD, Advanced CFD, Forex or Futures business. For the purpose of your share dealing, you will remain a private customer. Although not an exclusive list, this notice sets out some of the protections you will forgo:
Client Money: Any money we receive from you and hold under an investment agreement will not be subject to the FSA’s Client Asset Rules. This means that your money may not be segregated from our money and we may use it in the course of investment business.
Best Execution: We will not have any duty to provide you with best execution, although we will at all times endeavour to obtain the best price reasonably available to us in dealing with you.
Financial Ombudsman Scheme: You will lose your right of access to the Financial Ombudsman Scheme.
With all the rumours about Etrade and after the Northern rock debacle, Does this mean if they get into financial trouble I lose my money? Or at the very least come bottom of the creditors list?
Applicants can be classified as an intermediate customer on the basis of their understanding and experience in the relevant designated investments. As a consequence of this classification, you will lose the protections afforded to private customers under the rules of FSA for your Simple CFD, Advanced CFD, Forex or Futures business. For the purpose of your share dealing, you will remain a private customer. Although not an exclusive list, this notice sets out some of the protections you will forgo:
Client Money: Any money we receive from you and hold under an investment agreement will not be subject to the FSA’s Client Asset Rules. This means that your money may not be segregated from our money and we may use it in the course of investment business.
Best Execution: We will not have any duty to provide you with best execution, although we will at all times endeavour to obtain the best price reasonably available to us in dealing with you.
Financial Ombudsman Scheme: You will lose your right of access to the Financial Ombudsman Scheme.
With all the rumours about Etrade and after the Northern rock debacle, Does this mean if they get into financial trouble I lose my money? Or at the very least come bottom of the creditors list?
