Protecting Client Funds

Client Money Protection

 

Acetop Financial Limited (“Acetop”) is authorised and regulated by the Financial Conduct Authority (“FCA”) under Firm Reference Number 767154.

As an FCA-authorised firm, Acetop is required to comply with the FCA’s Client Assets Sourcebook (“CASS”), which sets out strict rules governing how client money must be received, held, segregated and protected.

Acetop is also a member of the Financial Services Compensation Scheme (“FSCS”).

 

Client Classification

When you open an account with Acetop, you will be classified as a retail client unless we notify you otherwise. Retail clients benefit from the highest level of regulatory protection available under FCA rules.

 

How Client Money Is Protected

Money received from, or held for, clients in relation to designated investment business is treated as client money in accordance with the FCA’s CASS rules.

Client money is segregated from Acetop’s own funds and held in designated client money bank accounts with approved third-party banks. These arrangements are established and maintained in accordance with FCA requirements and are subject to the statutory trust protections provided under CASS.

This means that:

• Client money is segregated from Acetop’s own corporate funds
• Client money is not available to Acetop’s creditors in the event of insolvency (subject to the FCA’s client money distribution rules)
• Client money is held on a pooled basis in accordance with FCA rules

Client money generally includes money deposited by clients and certain amounts due to clients under FCA rules.

 

Client Money Controls and Oversight

Acetop performs client money reconciliations in accordance with FCA requirements to ensure that its internal records and the balances held in client money bank accounts are appropriately reconciled.

Our client money arrangements are subject to ongoing oversight, including:

• An annual external CASS audit conducted by independent auditors, with findings reported to the FCA
• Ongoing internal monitoring as part of our governance, risk and compliance framework

 

Client Money Acknowledgement (CASS 7.10)

In accordance with CASS 7.10, Acetop holds client money as trustee under the FCA’s statutory trust framework.

By opening and maintaining an account with Acetop, you acknowledge that:

• Money paid to Acetop in connection with designated investment business will be treated as client money
• Client money may be pooled with that of other clients
• In the event of insolvency and a shortfall, client entitlements will be calculated on a pro-rata basis in accordance with the FCA’s client money distribution rules

This acknowledgement does not affect your statutory rights.

 

What Happens If Acetop Enters Insolvency?

If Acetop were to enter liquidation or insolvency proceedings, client money would be distributed in accordance with the FCA’s client money distribution rules.

Client money is pooled, and each client is entitled to a share of that pool proportionate to their entitlement at the time of the firm’s failure. The costs properly attributable to the distribution of client money may be deducted from the client money pool, in accordance with FCA rules.

Distribution of client money may take time depending on the circumstances of the insolvency.

If there is a shortfall in the client money pool, eligible clients may be entitled to compensation under the FSCS.

The current FSCS compensation limit for investment business claims is £85,000 per eligible client, per firm. Eligibility and compensation limits are determined by the FSCS and may change from time to time. Not all clients will necessarily be eligible for FSCS protection.

Further information about the FSCS is available at www.fscs.org.uk.

 

Bank Failure Risk

Client money may be held with one or more approved third-party banks. Acetop undertakes appropriate due diligence and ongoing monitoring of these institutions in accordance with regulatory requirements.

However, if a bank holding client money were to fail:

• Client money held at that bank would form part of the pooled client money arrangement
• Any resulting shortfall would be shared among affected clients on a pro-rata basis in accordance with FCA rules

Clients may have a claim against the FSCS in respect of such losses, subject to eligibility and applicable limits.

Client money may be held with banks located within or outside the United Kingdom, in accordance with FCA rules.

 

Non-UK Clients

The client money protections described on this page arise under UK law and FCA regulation.

If you are resident outside the United Kingdom, FCA client money rules will continue to apply to your account. However, eligibility for compensation under the FSCS is determined by the FSCS and may depend on factors including client classification, residency and the nature of the claim.

You may not benefit from equivalent investor protection schemes in your home jurisdiction.

 

Summary of Protections (Retail Clients)

In summary:

• Client money is segregated from Acetop’s own funds
• Client money is held under statutory trust in accordance with FCA rules
• In the unlikely event of insolvency, client money is distributed in accordance with FCA client money rules
• If there is a shortfall, eligible clients may be able to claim compensation from the FSCS (currently up to £85,000 per eligible client, per firm)