Regulation
Wensfer observes strict regulatory requirements. You can find in this section information about asset allocation, regulatory regime and client money.
All trading mandates are carried out under Limited Power of Attorney (LPOA) provided by our fully regulated brokers. LPOA is an authorisation for an investment manager to perform specific functions on behalf of a client in that client’s account. An LPOA gives the manager discretion to perform functions, such as trading authorisation, fee-payment authority and some communications with a broker, sending trading statements for example.
Our services are reviewed, authorised and assisted by brokers and banks regulated by the FCA in the UK and by the FINMA in Switzerland. Further information can be found on the FCA’s and the FINMA’s websites respectively.
Wensfer AA does not handle or control client money. Within the scope of Limited Power of Attorney (LPOA) we focus solely on trading-related activities. This means that we are not allowed to use client funds in the course of our business activities.
Our brokers act as depositaries and clients’ funds are held in segregated bank accounts, this means that client money and assets are completely ring-fenced and protected in the unlikely event that we or a broker became insolvent.
Our brokers have the obligation, like all banks and securities dealers in the UK and Switzerland, to be part of an independent compensation scheme to protect client money in the unlikely event of a liquidation.
Under the Financial Services Compensation Scheme (FSCS) in the UK. Clients’ funds are insured up to £85,000. For further information, please see www.fscs.org.uk.
Under the “Convention of Swiss banks and securities dealers regarding the insurance of deposits”, clients’ funds are insured up to CHF100,000. For further information, please see www.esisuisse.ch.
Our enhanced risk management processes help reduce clients’ exposure to unnecessary risks. Clients can choose to cease all trading should their accounts reach a predetermined stop-loss level. Trading would be instantly deactivated and all open positions closed to protect the remaining capital.