Finsa Pty Ltd, trading as Core Spreads Australia, has produced this policy document to state how they handle client money. The purpose of the document is to provide clients with an insight to how client money is reconciled and segregated so that they are better informed to assess the safety of their funds in relation to other CFD providers.
All client money is held at Westpac Bank, an Australian authorised deposit-taking institution.
All client money is segregated from any accounts used to hold Core Spreads Australia’s money but is co-mingled with other clients’ money as permissible by the Corporations Act.
Client money is required to meet margin requirements but margins are not transferred out of the segregated bank account to fund open positions.
Client money is not used to meet any of Core Spreads Australia’s margin requirements.
Each business day net client profits (realised or unrealised) on trades of the previous business day are transferred into the segregated client accounts and net client losses (realised or unrealised) of the previous business day are transferred out of the segregated client accounts. Therefore funds held in segregated client accounts represent the total amount due and payable to all clients as at the previous business day. Payments are only ever made out of the client money accounts to meet withdrawal requests and to pay any net client losses of the previous business day.
In the event of there being a loss on your account which exceeds the cash on your account, Core Spreads Australia covers the loss from its own funds as per its negative balance protection promise which means you are never exposed to any debt.
Core Spreads Australia performs daily and monthly reconciliations of the amount of reportable client money.