Where is my money held once Invested?
We hold client funds in segregated accounts across a range of major banks, in accordance with the FCA’s client money rules.

What does ‘segregated’ mean?
Segregated client money is held entirely separate from Newmount’s own money, ensuring that in the event of default by Newmount Trading, client funds will be returned to the clients rather than being treated as a recoverable asset by general creditors of Newmount Trading.
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 Newmount’s own funds.

What happens to my funds?
Funds transferred from an individual client to Newmount will usually be received directly into a segregated client bank account.

If money from an individual client is received into a general Newmount account it is still considered to be client money from the time it reaches

Newmount’s accounts (rather than only being considered client money once it has been placed into a segregated client account).

Newmount Trading uses client money to hedge positions in line with the risk management of each client’s portfolio. Newmount does not initiate speculative positions in the market out of the client’s risk category. Newmount is debt-free, with substantial liquidity and capital reserves significantly in excess of regulatory requirements.


Where does Newmount Trading hold my funds?
All money held on behalf of clients is held in accounts with a diverse range of Investment Houses and Banks.

Are my funds held on a segregated basis?
When a client invests with Newmount Trading they will be categorised as either a retail client, a professional client or an eligible counterparty – and Newmount Trading will inform them of this categorisation. All individual client funds, irrespective of classification, will be segregated, in accordance with the Financial Conduct Authority (FCA) rules surrounding client money.
The only clients who will not have their funds segregated from Newmount Trading are those professional corporate clients or eligible counterparties who have signed a document consenting to a ’title transfer’ of their funds to Newmount Trading.

What happens if Newmount Trading goes into liquidation?
If Newmount Trading 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 individuals (and some smaller companies) may be eligible for compensation from the Financial Services Compensation Scheme.

What happens if a bank holding client money on behalf of Newmount Trading goes into liquidation?
Selection of banking counterparties will only take place once a full risk assessment has been undertaken, and all banks are monitored on an ongoing basis and fully reviewed semi-annually, to ensure that they continue to meet the requirements of the FCA’s rules and Newmount’s own policy on banks holding client money.

Any losses would be shared by clients in proportion to their share of the total amount held with a bank which has failed. In the UK, any funds lost as a result of this would be covered by the FSCS under the ‘banks/building societies’ claim category, up to a limit of £75,000 per person per institution.