How does OANDA Europe Ltd hold my money?


Firms like OANDA Europe Ltd are required to separate client money from their own resources. This means that OANDA Europe is not allowed to use these monies for any of its business activities. Client money is ring-fenced and held in a trust accounts, to ensure that it is protected in the unlikely event that OANDA Europe Ltd becomes insolvent. OANDA Europe Ltd is authorised and regulated by the Financial Conduct Authority (FCA). The FCA has strict regulatory requirements, known as the client money rules (found in the FCA Client Assets Sourcebook – CASS), which govern exactly what can be done with client money and how it must be done.
What happens to my money once I make a deposit?
 
Your money is held in segregated bank accounts under trustee arrangements. This ensures that the cash remains yours, rather than OANDA Europe Ltd’s. It also means that it’s easily identifiable as client money, so OANDA Europe Ltd and its creditors don’t have any charge, liens, rights of set-off or retention over it. 
 
OANDA Europe Ltd. has segregated bank accounts at credit worthy banks such as HSBC Bank plc and The Royal Bank of Scotland plc. Client money must be split between banks to comply with FCA rules.


What happens to my money if OANDA Europe Ltd goes into liquidation?
 
In the unlikely event of OANDA Europe Ltd going into liquidation, all of our clients would have their share of the segregated money returned, minus the administrators’ costs in handling and distributing these funds. 
 
Any shortfall of funds of up to £50,000 may be compensated for under the Financial Services Compensation Scheme (FSCS). The FSCS is the compensation fund of last resort for eligible customers of an authorised financial services firm. It is designed by the UK government to act as a ‘safety net’ and covers eligible clients of a financial services firm which becomes insolvent. 

 
What happens if one of the banks OANDA Europe Ltd uses to hold my money goes into liquidation?

The losses would be shared by clients in proportion to the share of money held with the failed bank. Funds lost in this way may be compensated for under the FSCS up to a limit of £85,000 per person, per institution, subject to other balances held with the bank in question.

Find out more about what the FSCS covers and who is eligible to claim at their website www.fscs.org.uk
 

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