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. These CASS rules have been created to ensure that your money and assets are safeguarded in the event of our insolvency.
In accordance with CASS, money we receive from you may be held with one or more of the following:
a central bank
an authorised bank
a Qualifying Money Market Fund (QMMF)
Your Cash ISA money may be held by us with one or more financial institutions, which currently include National Westminster Bank (NatWest) and an AAA-rated Qualifying Money Market Fund.
How the FSCS protects you
The Financial Services Compensation Scheme (FSCS) is an independent organisation that protects customers of authorised financial services firms if those firms fail.
The level and type of FSCS protection available depends on what has failed and how your money is held.
If a bank holding your cash fails
Where we hold your Cash ISA money with a UK-authorised bank (currently NatWest), and that bank was to fail, your money is protected by the FSCS under the deposit protection scheme.
FSCS deposit protection covers up to £120,000 per person, per banking group. This limit applies to all deposits you hold with that bank, including any held outside CMC Invest.
If your cash is held in a Qualifying Money Market Fund (QMMF)
Where your Cash ISA money is held in a Qualifying Money Market Fund:
The money is not covered by FSCS deposit protection
The units or shares in the fund are held as safe custody assets under the FCA's CASS rules
They are segregated from our own assets
The money market fund is designed to invest in low-risk, highly liquid assets and is rated AAA by an independent credit rating agency.
If CMC Invest were to become insolvent (investment protection)
If CMC Invest were to become insolvent:
Your money and assets would continue to be segregated under the CASS rules
You may be eligible for FSCS investment protection, which is capped at £85,000 per person and applies only if there is a shortfall in client money or assets after the application of the CASS rules.
This protection is separate from FSCS deposit protection.
Important information
FSCS protection does not protect against losses caused by market movements.
You can find out more about FSCS and how it operates on the FSCS website.
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 individual circumstances and may change in the future.
