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Collateral service expansion


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Hello, 

 

As far as I'm aware, your collateral service is only available with a share dealing account. With the leverage restrictions from ESMA due to come into force in a few months (and I'm hoping there's a legal challenge from the brokers to halt/prevent these punitive restrictions), would you consider expanding your collateral service to your Smart Portfolios? As I would much rather open a Smart Portfolio ISA with IG and use the capital as margin on my spread betting account, as opposed to cashing in interest-bearing assets just to sit in my spread betting account as dead money. 

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Unfortunately I have no information on this at this time, however once we have a clear understanding of the regulations and all options available, we will see what we can do and I will let you know. Obviously our priority is to continue to offer a service and product which our clients want, with different options available depending on the suitability and wants of those clients. 

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  • 3 weeks later...
Guest thomasschmidtco

All,

 

Brokerages are correct in their assessment criteria for a requirements of a professional account as per section 3.5.3 paragraph 1 of the FCA Code of Business.

 

However, please be advised that section 3.5.3 paragraph 3 of the same FCA Code of Business also allows a client to be "elected" to be treated as a professional client if they do not meet the criteria.

 

The requirements for the selection of professional client lie not with the broker but with the client, the broker merely has to demonstrate due diligence in protecting the retailer.

 

My strategy is one of portfolio diversification (which is the correct d-risking strategy) and therefore I do not meet the full criteria for a professional account per say as I keep my lot sizes small. I don't wish to change my strategy either. I've been profitable for 12 years.

 

[MOD EDIT: please refrain from posting personal details as this goes against our terms of service] 

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  • 2 weeks later...

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