Segregated Client Money

Your domestic account will be held with IG Markets South Aftica Limited. We protect our clients' funds, holding individual clients' money in segregated accounts.

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.

Are my funds held on a segregated basis?

At IG, all clients' funds are segregated from those funds belonging to IG, as per the general code of conduct for authorised financial services providers under the Financial Advisory and Intermediary Services Act.

When you open an account with us we will hold your money on a segregated basis. This means that we pay each client's money – including deposits and net unrealised profits – into a segregated client bank account (i.e. an account which is separate from our own).

How are my funds protected with IG?

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

The money in the segregated bank account is treated as belonging to our clients and cannot be used by us, so the security of our clients' money is absolutely unaffected by the financial state of IG.

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 and has no exposure to corporate or sovereign debt. 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 fortnightly.

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. The report is freely available to clients – please email us if you would like a copy.

Where does IG hold my funds?

All money held on behalf of clients is held in a segregated trust account with Standard Bank.

What happens if IG goes into liquidation?

If IG goes into liquidation, clients whose funds were held in segregated accounts would have their share of the segregated money pool returned, minus the administrators’ costs in handling and distributing these funds.

If there was a shortfall then, depending on the circumstances, clients may be eligible for compensation from the Professional Indemnity and Fidelity cover held by IG SA.

Are there any additional safeguards in place regarding client money?

IG’s client money processes and compliance with FSB legislative requirements are audited annually by its statutory auditors, and then reported to the FSB.

IG's offshore accounts are held with IG Markets Ltd, a UK company authorised and regulated by the FSA, FSA number 195355. IG has an exemplary record as a respected financial derivatives provider.

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 £1.67 billion and capital resources for the year ended May 2011 of £263.6m. An unrivaled balance sheet and adherence to both London Stock Exchange, Financial Services Authority rules and FSB legislative requirements, afford clients the security, resources and stability of a multinational organisation. Furthermore, the IG Group is debt free, has substantial liquidity and significant surplus regulatory capital reserves over its regulatory requirements.

IG Markets South Africa Limited is regulated by the Financial Services Board (FSB) and is an Authorised Financial Services Provider, FSP number 41393.

For details of the safety of your funds held in an offshore account with IG, please click here.

For more information about IG Markets South Africa and IG Group, visit our About Us page.