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)1.
A QMMF is a type of fund that invests in low risk, high quality and highly liquid investments such as short-term debt instruments. It provides an alternative way for firms to hold client money.
Your Cash ISA money may be held by us with a number of financial institutions such as a bank(s) or QMMF, as allowed under the CASS rules.
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 if the bank were to fail, your money is protected by the FSCS up to a total of £85,000. This total applies to all deposits you have with the bank and not just the money that has been deposited through your Cash ISA with us.
Where we hold your Cash ISA money in a QMMF and the fund manager of the QMMF or the custodian were to fail, you may be afforded protection under FSCS in certain circumstances. For instance, you may receive protection if the fund manager or custodian were to commit a civil liability whereby a UK court ruled that it had committed negligence, misrepresentation or a breach of the FCA's rules.
You can find out more about the FSCS through their website.
CASS safeguarding rules
Besides the FSCS protection, 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 QMMF(s), the units or shares in those QMMF(s) 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 are 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.
