Hello folks,
at the moment all clients money of Australian brokers must be segregated from the brokers money.
Does that mean that the brokers cant get the clients money?
Think again: they're allowed to use this money for working capital, so in the event of insolvency your money may be paid or gone out to other lenders.
So for today your money has no protection at all.
Nevertheless a new law has come in: no longer use of clients money by the brokers and has to have insurance of clients money.
Brokers will need to change their code of behavior seeing that they cant use clients money.
There'll be transition period of 12 weeks from November 2016 for all brokers to honor.
My question: which brokers are complying with the new regulations?