hello folks,
at the moment all clients money of Australian brokers must be segregated from the brokers money.
does that mean the brokers cant touch the clients money?
think again: they are allowed to use this money for working capital, so in case of insolvency your money might be gone or paid out to other creditors.
so for now your money has no protection at all.
however a new law has come in: no more use of clients money by the brokers and must have insurance of clients money.
brokers will have to change their code of conduct seeing they cant use clients money anymore.
there will be transition period of 12 months from November 2016 for all brokers to comply.
my question: which brokers are complying with the new regulations?
at the moment all clients money of Australian brokers must be segregated from the brokers money.
does that mean the brokers cant touch the clients money?
think again: they are allowed to use this money for working capital, so in case of insolvency your money might be gone or paid out to other creditors.
so for now your money has no protection at all.
however a new law has come in: no more use of clients money by the brokers and must have insurance of clients money.
brokers will have to change their code of conduct seeing they cant use clients money anymore.
there will be transition period of 12 months from November 2016 for all brokers to comply.
my question: which brokers are complying with the new regulations?