In addition to the information published above, the Financial Markets Conduct Regulations 2014
provides for:
1. The payment of investors’ money into a trust account .
2. That investors money is held separately from money held by or for the derivatives
issuer, the offeror and any person who holds the money.
3. That investors’ money ceases to be held on trust and maybe withdrawn from the trust
account only if the money:
a. is repaid to the investor:
b. is used in the settlement of the derivative with the investor:
c. is used to acquire a derivative with the issuer in accordance with the investor’s
express instructions:
d. is used to meet obligations relating to exchange-traded derivatives, but only
I. the client agreement authorises the money to be used in that way; and
II. the derivatives issuer is satisfied that the person who receives the money is a
hedging counterparty or is subject, in respect of the money, to obligations that are
the same as, or substantially similar to, the obligations in regulations 238 to 250:
4. is used for authorised hedging activities, but—
I. only if the client agreement authorises the money to be used in this way; and
II. only so much of the money may be transferred to a hedging counterparty as is reasonably required for entering
into derivatives with the hedging counterparty or for settling or securing those derivatives with the hedging counterparty:
5. is used to pay brokerage or other fees and charges authorised by the client agreement:
6. is paid to a third person in accordance with the investor’s express instructions given after the money is received by the derivatives issuer.