Safety of Client Assets

FNZ Securities is part of FNZ Group. The firm is well capitalised with net capital well in excess of the regulatory requirement.  The company has no debt and has no investment assets of its own to mingle with clients’ assets.


Regulatory oversight and protection

FNZ Securities is authorised and regulated by the Financial Conduct Authority (FCA) which sets high quality regulatory and investment industry standards, protects investors and strengthens market integrity while maintaining efficient and competitive capital markets.


FCA carries out its regulatory responsibilities through setting and enforcing rules regarding the proficiency, business and financial conduct of regulated firms and their registered employees and through setting and enforcing market integrity rules regarding trading activity.


Compliance with various customer protection and custody rules as well as our own internal procedures is also subject to review by independent auditors.


Our procedures involve daily reconciliations of assets in client accounts carried out by an independent department.


Insolvency of a regulated firm

FCA rules mandate that all client money and assets must be held in trust accounts so that in the event a regulated firm becomes insolvent any creditors of that firm would have no legal right to those assets. In the case of FNZ Securities, our primary sub custodian is the Bank of New York Mellon . BNY Mellon is the world's largest custodian bank with more than $30.5 trillion in assets in custody. 


Client Investments Are Held Separately From Our Operations

The securities industry in the United Kingdom is among the most heavily regulated in the world to help ensure that investment accounts are a safe and accessible place for individuals, families and businesses to place money they wish to invest.


A cornerstone of protection of client assets in regulated firms is the segregation of assets — that is, client assets are held separately from the assets of the firm. This principle is laid out in the FCA’s CASS (Client Assets) Rule, which states that all fully paid client securities must be held separately from the regulated firm’s own assets and are not available for firm use.


FNZS has no investment assets of its own and therefore can never put the client assets at risk in this manner. This may be different to what happens if a bank or other large financial institution fail, as they are commonly not subject to Client Money and Client Asset rules and are permitted to lend out and comingle the client and firm assets leading to potential shortfalls in client asset pools due to obligations of the institution.


Financial Services Compensation Scheme (FSCS)

Deposits at banks and most regulated institutions including FNZ Securities are protected on principal and accrued interest up to £85,000 per person per firm (for claims against firms declared in default from 30 January 2017). These limits are based on a client’s deposits at a given bank in the aggregate, even if those deposits are in different accounts.