How your money is protected
How we hold your money
CMC Invest is authorised and regulated by the Financial Conduct Authority (FCA) and we have regulatory permissions to hold and control client money.
Under the FCA’s Client Asset Sourcebook rules (CASS), we are required to segregate your money and assets from our own money and assets. These CASS rules have been created to ensure that your money and assets are safeguarded in the event of our insolvency (see CASS safeguarding rules below).
The CASS rules require a regulated financial services company, such as us, to hold money received from you with either:
a central bank;
an authorised bank; or
a Qualifying Money Market Fund (QMMF).
Your Cash ISA money may be held by us with one or more financial institutions including National Westminster Bank (NatWest) and an AAA-rated Qualifying Money Market Fund.
The FSCS protects up to £85,000 per person, per financial institution. If you have existing deposits with NatWest, you should be aware that they will count towards the FSCS protection limit. Please see below for more information on FSCS protection.
A money market fund is a type of fund that invests in low risk, high quality and highly liquid investments such as short-term assets like government bonds. It can provide an alternative way for firms to hold client money.
While you may be used to thinking of cash in a bank account as the standard for safety, a money market fund is designed to operate in a similar way – with the added benefit that a money market fund can sometimes offer slightly better returns. It also allows easy access to your money, just like a savings account.
The fund is rated AAA by an independent credit rating agency. This means that it is considered to have a very strong capacity to meet its financial obligations and is considered at low risk of default.
FSCS protection
The Financial Services Compensation Scheme (FSCS) is an independent organisation, which protects customers of financial services firms that have failed.
Where we hold your Cash ISA money with a bank (currently, that bank is National Westminster bank) and the bank were to fail, such money is protected by the FSCS up to a total of £85,000. This total applies to all deposits you have with the bank, together with the money that has been deposited through your Cash ISA with us.
You can find out more about the FSCS through their website.
CASS safeguarding rules
Where we hold your Cash ISA money with a bank, your money will be segregated by us as client money in accordance with the CASS rules.
Where we hold your Cash ISA money in a money market fund, the units or shares in the fund will be held as safe custody assets in accordance with the CASS rules.
Therefore, if CMC Invest were to become insolvent, your money and assets will be protected under the CASS rules.
Disclaimer: Interest rates are subject to change; ISA terms and conditions apply. AER stands for Annual Equivalent Rate and shows you what the interest rate would be if interest was paid and compounded once each year. ISA and tax rules apply. Tax treatment depends on your individual circumstances and may change in the future.
