Selection of banking counterparties will only take place once a full risk assessment has been undertaken. Additionally all selected banks are monitored on an ongoing basis and fully reviewed semi-annually, to ensure that they continue to meet the requirements of the DFSA rules and IG's own policy on banks holding client money.
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 Financial Services Compensation Scheme (FSCS) up to limit £85,000 per person, per institution, subject to others 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.