Caxton FX to offer client money protection scheme

Caxton FX has become the first foreign exchange company to offer its clients a money protection scheme that is authorised and regulated by the Financial Services Authority (FSA).

Within the unregulated forex industry, Caxton FX is the only broker to ensure the safety of client's money through segregated Client Money Accounts.

Under the new service, Caxton FX will hold money on behalf of clients in accordance with the Financial Services Authority (FSA) client money rules, which means they are held in a segregated account in an EU regulated credit institution (bank or building society). This protective package is designed to safeguard client money in the unlikely event that Caxton FX should ever experience financial difficulties.

In addition to the segregated accounts, private investors' funds are protected under the Financial Services Compensation Scheme, which is designed to guarantee funds up to a limit of £48,000.

Rupert Lee-Browne, Caxton's Chief Executive, says the introduction of the scheme at Caxton FX is a great step forward for the company and a sign of the growing maturity of this leading foreign exchange boutique.

"Clients want to know that their funds are safe when they use a currency broker. As the only company in this sector who can offer real protection to customers, our aim is to ensure clients have peace of mind when using our service. We welcome the scrutiny of an independently regulated body since it offers clients genuine comfort about the safety of their money. It sets Caxton FX apart from all other currency companies in the UK.

Industry figures welcomed the move. Dominic Thorncroft, Chairman of the UK Money Transmitters Association says "The move by Caxton FX is specifically designed to address the issue of client fund safety head on and it has reached a significant milestone in the industry. This marks the next stage in the debate about client protection and regulation in the foreign exchange industry."