Additional Client Money Insurance
We have a supplementary insurance that covers each customer up to £1,000,000 in excess of the standard FSCS cover. This service is free of charge for our customers.
This extra insurance builds on the standard FSCS protection
Client funds are insured under the Financial Services Compensation Scheme (FSCS), which would be able to cover a shortfall to the extent of £85,000 per person in the unlikely event that the firm stops trading or is declared in default.
Client money is only held in reputable global banks, which we review regularly to ensure that they are in good financial condition. In the event that a UK banks defaults, the FSCS will compensate you with up to £85,000.
You can read our insurance policy
More on the FSCS and claiming
ayondo markets is covered by the Financial Services Compensation Scheme (FSCS). This means that in the unlikely event of ayondo markets being unable to meet its financial obligations, the FSCS could compensate for the shortfall with up to £85,000.
The FSCS is the UK’s compensation fund of last resort for customers of authorised financial services firms. The FSCS may pay compensation if a firm is unable, or likely to be unable, to pay claims against it. This is usually because it has stopped trading or has been declared in default.
It is independent of the government and the financial industry, and was set up under the Financial Services and Markets Act 2000, becoming operational on 1 December 2001 (although it still covers claims from before this date). It does not charge individual customers for using its service.
Please refer to the FSCS website or call 0800 678 1100 for more details.
The process to request my money from the FSCS
Once an authorised firm is declared in default by the FSCS, they may try to contact you with an application form. You may also contact them in the meantime. You submit the application form, which is then reviewed, and your claim is processed. They will inform you of their decision in writing.
How long does it takes for the FSCS to refund my money?
The length of time each claim takes to process depends on a number of factors, some of which are entirely outside of the FSCS’s control. However, the FSCS will try to process your claim within the following timelines:
Claims against deposit takers
The FSCS will aim to pay compensation in the majority of cases within 7 days of a bank, building society or credit union failing. Any remaining claims, which are likely to be more complex, will be paid within 20 working days.
Claims against all other companies
The FSCS tries to resolve all claims against investment firms within 6 months of receiving your correctly completed Claim Application Form, or within 6 months of the company being declared in default (whichever is later).
What happens if ayondo markets Limited defaults?
If ayondo markets goes into liquidation, it would be considered a “primary pooling event” in the FCA handbook. In the event of a “primary pooling event”, a client’s main claim is for the return of the client money held in the client money bank account. A client may be able to claim for any shortfall against money held in a firm’s own account. For that claim, the client would be an unsecured creditor of the firm.
If, after the liquidation of the company, any client claim is not settled in full, the client can approach the FSCS. The FSCS would be able to cover the shortfall to the extent of £85,000 per person.
What if the bank or third party with whom my money is placed fails?
Failure of a bank or third party, within which client money is placed by us, is considered a “secondary pooling event” in the FCA handbook. In the event of a “secondary pooling event”, money held in each general client money bank account and client transaction account (with third parties other than banks), must be treated as pooled. Any shortfall in client money that has arisen as a result of the failure of the bank/third party must be borne by all the clients, rateably in accordance with their entitlements.
In the event of the liquidation of ayondo markets, what happens to my open positions?
ayondo markets Limited or its administrators would do everything possible to find another suitable firm to transfer your open positions. On failure to find a suitable firm, your position would be liquidated.
In the event of liquidation, what happens to my investments/unrealised P&L?
As explained above, if, after the liquidation of the company any client claim is not settled in full, the client could approach the FSCS. The FSCS would be able to settle the shortfall to the extent of £85,000 per person.