Protecting your money

We protect our clients' moneys, – including net unrealised profits/losses –
in trust accounts with banks licensed by the Monetary Authority of Singapore (the “MAS”).

What does 'segregated' mean?

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

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

What happens to my funds

Funds transferred from an individual client to IG will usually be received directly into a segregated client bank account.

If money from an individual client is received into a general IG account it is still considered to be client money from the time it reaches IG’s accounts (rather than only being considered client money once it has been placed into a segregated client account).

IG uses only its own funds for hedging and does not pass client money to hedging counterparties or to any part of the business as working capital. IG does not initiate speculative positions in the market. IG is debt-free, with substantial liquidity and capital reserves significantly in excess of regulatory requirements.

IG also has a ‘Client Money Committee’ which is responsible for ensuring the client money regulations are being adhered to in all IG Group entities, as well as reviewing and evaluating all the client money controls and procedures. The Committee meets monthly.

In addition,  we have engaged PricewaterhouseCoopers LLP to conduct an independent review of our controls and procedures for client money calculation and segregation. By commissioning this report we have taken an additional step, over and above standard audit checks and our regulators’ reporting requirements.

Where does IG hold my funds?

All moneys held on behalf of clients are held in accounts
with a diverse range of top-tier banks licensed in Singapore
and therefore subject to MAS’ supervision.

Are there any additional safeguards in place regarding clients' moneys?

The procedures and controls implemented by IG to comply with Singapore laws and regulations on protection of client money are audited annually by IG’s statutory auditors. IG is also required to provide the statutory auditor’s opinion on its compliance with the Singapore client money protection rules to the MAS.
 
IG Group Holdings PLC, the parent of IG Group, is listed on the London Stock Exchange and is a constituent of the FTSE® 250 index. It has a current market capitalisation of approximately £2.9billion (May 2016) and capital resources for the year ended May 2016 of £446.7m. 
 
In addition to compliance with the Singapore clients’ moneys protection rules,  IG Group’s unrivalled balance sheet and adherence to London Stock Exchange and UK Financial Conduct Authority rules afford clients the security, resources and stability of a multinational organisation.

What is a Trust Account?

We are required to set up accounts with banks in Singapore to hold clients’ moneys. These accounts are designated as 'Trust Accounts' to distinguish them from other accounts held by IG. Moneys deposited in a trust account are held on trust by IG for and on behalf of our clients. 
 
We deposit moneys received from clients in the trust accounts no later than the business day immediately following the day on which the moneys  are received, or the day on which IG is notified of the receipt of such moneys, whichever is the later.
 
Clients' moneys held in trust accounts are segregated from IG's own moneys.  This ensures that in the event of default by IG, client’s moneys will be returned to the clients rather than being treated as a recoverable asset by IG’s general creditors.
 

Our Client money protection

All client money is held in segregated trust accounts in accordance with the Singapore clients' money protection rules
All moneys held on behalf of clients is distributed across several top-tier banks regulated by the MAS
IG only uses its own funds for hedging
IG does not pass clients' moneys through to hedging counterparties
IG is not an investment bank
IG does not initiate speculative positions in the market
IG has no exposure to corporate or sovereign debt
IG is regulated by MAS
IG is owned by IG Group Holdings plc – a FTSE 250 company listed on the LSE

 

Client Money Protection Rules

IG’s business in Singapore is regulated by the MAS.
 
We are subject to the Singapore client money protection rules prescribed under the Securities and Futures Act and the Securities and Futures (Licensing and Conduct of Business) Regulations. 
 
These rules stipulate how we may hold and handle moneys that belong to our clients. We comply fully with these rules at all times.
 

What happens if IG goes into liquidation?

If IG were to go into liquidation, clients with moneys held in trust accounts would have their share of the funds returned, minus the administrators’ costs in handling and distributing these funds and amounts owed by the clients to IG.

What happens if a bank holding client money on behalf of IG goes into liquidation?

Banks are selected only following a full risk assessment, to ensure that they meet the requirements of IG’s own policy on banks holding client money. All selected banks are monitored on an on-going basis.

In the event that a Singapore-based bank defaults, clients’ moneys held in the trust account will be treated as a liability of the Singapore bank and dealt with in accordance with applicable Singapore laws and regulations.

What is hedging?

When you open a CFD position, some CFD providers may then hedge that position in the underlying market.

For example, let's say you bought 1,000 SIA share CFDs. As the CFD provider sold the CFDs to you, it would have a corresponding short CFD position. If the price of SIA shares went up, you would make a profit while your provider would make a loss. To reduce this risk, some CFD providers may hedge client positions in the underlying market. In this case, if the provider did hedge, it would buy 1,000 SIA shares.

Now the CFD provider would hold two positions – a short position on 1,000 share CFDs, and a long position on 1,000 shares. If the share price rose, the provider would make a loss on the short position, but this would be offset by a profit on the long position. Likewise, if the share price fell, the provider would make a loss on the long position which would be offset by a profit on the short position.

Your CFD position remains unchanged – when the price of SIA shares goes up, you make a profit, and when it falls you make a loss.

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Contact us

Our office is open 5 days a week Monday to Friday from 9am to 6pm. Support line is available 24hrs a day from 8am GMT Saturday to 10pm GMT Friday

+65 6390 5118

You can also email us helpdesk@ig.com.sg

Visit our storefront office at 9 Battery Road