Safety of Funds

Overview

All client money is held in segregated client bank accounts in accordance with the FSA’s client money rules

All money held on behalf of clients is kept in top-tier banks

Segregated Funds

Client money is held entirely separate from HanzoFx’s own money, ensuring that in the unlikely event of default by HanzoFx, client funds will be returned to the clients rather than being treated as a recoverable asset by general creditors of HanzoFx.

The money is ‘ring-fenced’ in separate bank accounts which are held in trust with the clients as the beneficiaries, and is not held with HanzoFx’s own funds.

Are my funds held on a segregated basis?

When a client opens an account with HanzoFx, they will be categorized as either: a retail client, a professional client or an eligible counter party – and HanzoFx will inform them of this categorization. All client funds will be segregated in separate accounts with our bankers.

How are my funds protected

Funds transferred from an individual client to HanzoFx will be received directly into a segregated client bank account. HanzoFx does not pass client money to any part of the business as working capital. HanzoFx has no exposure to corporate or sovereign debt. HanzoFx is debt-free, with substantial liquidity and capital reserves significantly in excess of regulatory requirements.

What happens if HanzoFx goes into liquidation?

In the unlikely event HanzoFx goes into liquidation, clients whose funds are held in segregated accounts will have their share of the segregated money pool returned, minus the administrators’ costs in handling and distributing these funds. If there is a shortfall than retail clients will be eligible for compensation from the Financial Services Compensation Scheme.

 

Additional Safeguards

HanzoFx’s client money management and compliance with FSA rules are audited annually by our statutory auditors, and then reported to the FSA.

HanzoFx is also required to file a monthly Client Money & Assets Return to the FSA,. The purpose of the Return is to ensure that the FSA receives regular and comprehensive information from a firm which is authorized to hold client money on behalf of its clients.