CMC lifts money handling standards
CMC Markets has upgraded its money handling arrangements in Australia and New Zealand, announcing this week the implementation of what it describes as a "fully segregated client money model including client margins".
Announcing the move, the company said that while it had always maintained client monies to the highest standards, it could not offer clients greater peace of mind via its 100 per cent segregated model.
CMC Markets Australian head Louis Cooper said the company had been working towards the model for several months and that the move brought the Australian operation into line with the CMC's practices of the parent company in the UK.
Cooper acknowledged that client money treatment had recently been in the spotlight following the corporate collapse of futures broker MF Global.
While the group's demise has been widely attributed to its $6 billion exposure to European sovereign debt and a recently reported commercial loss of $187 million, the company's use of client moneys had also come into question.
"Although the demise of MF Global is not necessarily related to its CFD business, it's important our customers feel safe and secure about the money they invest via CMC Markets' market leading platform," Mr Cooper said.
AUTHOR
Mike Taylor
Recommended for you
Greater consistency across the ASIC adviser exam has helped boost the number of first-time candidates this year with many opting to sit before undertaking a Professional Year.
Financial advice practice Eureka Whittaker Macnaught is in the process of acquiring three firms to boost its annual revenue to $25 million.
AMP has partnered with Dimensional Fund Advisors and SouthPeak IM to launch a suite of investment solutions aimed at expanding retail access to traditionally institutional funds.
The Financial Advice Association Australia has appealed to licensees to urgently update their FAR records as hundreds of advisers are set to depart by the end of the year.
