Caxton FX Ltd is authorised and regulated by the Financial Conduct Authority under the Financial Services and Markets Act 2000 ('FSMA') as well as the Payment Services Regulations 2009 ('PSR'). Read below for details on what this means for you.
As part of our permissions, we offer clients who use our services the protection of the FCA's client money rules. Click here to view our permissions.
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 FCA, then we hold your funds under "Client Money protection".
Caxton FX holds all "Client Money" to the standard set out in the Financial Conduct Authority's 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 FX 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.
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 FCA (which includes small companies), are covered by the scheme up to a limit of £75,000 per person per firm. For clarification, neither Foreign Exchange nor Payment Services are regulated investment products and so do not fall under the FSCS. Further details of the compensation scheme are available from the FSCS website www.fscs.org.uk.
If you need further clarification on this matter, please refer to our account management team on 0207 042 7629 or e-mail them on firstname.lastname@example.org
Caxton FX is fully committed to protecting the integrity of its transfer system - find here our strict Anti-Money Laundering policy.
When you apply for a Caxton FX currency card, you will be asked to confirm your identity and other personal details. Caxton FX has established special verification systems to confirm your identity.
You could be asked to confirm your identity whether you are applying to be a new customer or have been a customer for some time. While our identity verification systems are designed to minimise any inconvenience for you, the verification process may take a day or so to complete.
Crime and terrorism need cash. Criminals turn the 'dirty' money made from drug smuggling, trafficking and other organised crime into clean money by using false identities or taking the names of innocent people - like you. Making sure that people are who they say they are is essential in the fight against crime and terrorism. This does not mean in any way that suspicion is falling on you. Any information about your identity is held confidentially and will help stop your identity being used falsely.
HM Government and all organisations involved in financial services - all are united in their determination to stop the spread of financial crime as part of an international effort to protect us all against crime and terrorism.
Your co-operation is vital to the successful fight against crime and terrorism.
What the UK law requires:
We are required to verify your identity and address.
We are required to keep full records of all transactions together with the identification provided.
We are required to monitor any unusual or suspicious transactions of any size.
We have a legal obligation to report to the National Crime Agency (NCA) any suspicious transaction.