Authorised and regulated

Caxton FX Ltd is authorised and regulated by the Financial Services Authority under the Financial Service and Markets Act 2000 (“FSMA”) as well as the Payment Services Regulations 2009 (“PSR”). As part of our permissions, we offer clients who use our services the protection of the FSA’s client money rules. Click here to view our permissions.

 

How does it work?

Caxton FX offers “Client Money protection” on all currencies that we exchange. If you send money to us prior to a transaction taking place and if we hold money for you after an FX transaction has been completed or if we are holding money for you with respect to designated investment business as defined by the rules of the FSA, then we hold you funds under “Client Money protection”.

Is my money safe?

Caxton FX holds all “Client Money” to the standard set out in the Financial Services Authority’s (FSA) Client Money rules.  This means we segregate “Client Money” from the company’s money and hold it separately in an EEA regulated credit institution.  The credit institution has specifically acknowledged that the money in these accounts belongs to our clients and they have no right of set off with any of the firm’s balances.  This arrangement is designed to ensure that “Client Money” is not at risk in the unlikely event of Caxton getting into financial difficulties.  These arrangements are checked and verified by our auditors.

Client Money has the specific definition of “money of any currency which, in the course of carrying on designated investment business, a firm holds in respect of any investment agreement entered into, with or for a client, or which a firm treats as client money in accordance with the client money rules.”  It is important to note that spot and forward foreign exchange transactions are not regulated activities. This means that during the actual settlement process for your fx transaction, your funds are not held in segregated Client Money accounts and is not deemed to be Client Money at that time.

Financial Services Compensation Scheme

In respect of designated investment business only (see above) client money held by Caxton FX is also covered by the Financial Services Compensation Scheme (FSCS).  For clarity, designated investment business does not include spot or forward fx transactions but does include currency options. Private investors, as defined by the FSA (which includes small companies) are covered by the scheme up to a limit of £85,000 per person per firm. For clarification, neither Foreign Exchange nor Payment Services are regulated investment products so do not fall under the FSCS. Further details of the compensation scheme are available from the FSCS website www.fscs.org.uk.