LCG Limited is authorised, regulated and registered by the Financial Services Authority, registration number 182110. The Financial Services Authority is based at 25 The North Colonnade, Canary Wharf, London E14 5HS and www.fsa.gov.uk.
Regulation by the Financial Services Authority demands that LCG complies with vigorous checks regarding capital adequacy and client money. All money held by LCG including deposits, client winnings and even uncleared cheques to clients are held in segregated bank accounts.
Spread betting and trading in Contracts For Differences (CFDs) carries a high level of risk to your capital. You may incur profits or losses of many times the amount of your stake or the money you originally deposit. Only trade with money that you can afford to lose. Debts incurred through spread betting and CFDs trading are legally binding and enforceable. Make sure you fully understand the risks involved and take advice if necessary. Spread betting and CFDs trading may not be suitable for all individuals. We strongly recommend that you read the Risk Warning notice and Terms and Conditions before you start trading.
In placing a spread bet, you are entering into a contract which is legally enforceable by virtue of section 412 (or any other superseding section) of the Financial Services and Markets Act 2000.
Please note that tax law can, of course, be changed or may differ if you pay tax in a jurisdiction other than the UK. Tax treatment depends on the individual circumstances of each client and may be subject to change in the future.
The information on this site is not directed at residents of the United States of America or Turkey; or any particular country outside the UK where its distribution or use would be contrary to local law or regulation. It is the responsibility of visitors to this site to ascertain the terms of and comply with any local law or regulation to which they are subject.
Whilst LCG has made every effort to ensure the accuracy of the information on this site, the information given on the site is subject to change, often without notice. It is for guidance only and no liability is accepted by LCG for its accuracy or otherwise.
2. TREATMENT OF CLIENT FUNDS HELD BY LCG
Applicable regulatory regime LCG Ltd is authorised and regulated by the UK Financial Services Authority (the FSA) and as such is subject to the FSA’s client money rules with regards to the handling of funds belonging to its clients.
The purpose of the client money rules is to ensure that an authorised firm provides adequate protection for funds which it holds for its clients by requiring on a mandatory basis the separation of client funds from the firm’s own funds, other than in limited prescribed circumstances.
This mandatory separation of its clients’ funds from its own proprietary funds is achieved by it holding funds which its clients pay over to it in segregated bank accounts which its bankers have acknowledged to be client money accounts. LCG’s client money accounts are held across 4 different UK Banks.
By operation of the FSA’s client money rules the client funds which LCG holds in these accounts are subject to the terms of a trust which applies automatically by virtue of section 139(1) of the Financial Services and Markets Act 2000.
That trust arrangement creates a fiduciary relationship between LCG and its clients, under which client funds held in the client money accounts maintained by LCG in its own name remain in the beneficial ownership of the clients according to their respective pro rata interests in them. Consequently money which LCG holds for its clients in its client money accounts would not be used to satisfy the claims of any other creditors of LCG.
When you pay funds into your LCG account they will always be held in LCG’s client money accounts, except in certain limited circumstances as permitted by the FSA client money rules.
What happens to client money in the event of the failure of a firm or its bankers?
The rules on client money, and in particular on the distribution of client money in the event of the failure of a firm or its bankers, are complex. Like all authorised firms, however, LCG will always be required to deal with client money which it holds in accordance with these rules.
In the event of a shortfall, you may be entitled to compensation from the Financial Services Compensation Scheme. Most types of investment business are covered up to a maximum £50,000 claim.
3. RESPONSIBLE TRADING
LCG want customers to enjoy trading with it and are committed to providing them with a secure, fair and socially responsible service. LCG therefore provides a number of measures and features to reassure customers and assist them in trading responsibly.
Treating Customers Fairly TCF, with its focus on consumer outcomes, is central to the behaviour and values of all senior LCG management, who effectively communicate messages about the fair treatment of customers and apply appropriate controls and monitoring to ensure that the fair treatment of customers is delivered by all staff. The firm has a clear vision which supports the fair treatment of customers. This is reflected within the formulation and implementation of strategic decisions. The firm uses staff, customer and other external feedback where appropriate, with timely action, to improve its treatment of customers.
Access to customer history
If you need further help or to talk to someone about responsible trading then contact one of the appropriate organisations, whose details are listed below:
Gamblers Anonymous: www.gamblersanonymous.org
GamCare: www.gamcare.org.uk or UK helpline 0845 6000 133
Gambling Therapy: www.gamblingtherapy.org
Gamble Aware: www.gambleaware.co.uk
Do you stay away from work, college or school to gamble?
Do you gamble to escape from a boring or unhappy life?
When trading and you run out of money, do you feel lost and in despair and need to gamble again as soon as possible?
Do you gamble until you lose all your money?
Have you ever lied to cover up the amount of money or time you have spent trading?
Have you lied, stolen or borrowed to maintain betting habits?
Have you lost interest in your family, friends or hobbies?
After losing, do you feel you must try and win back your losses as soon as possible?
Do arguments, frustrations or disappointments make you want to gamble?
Do you feel depressed or even suicidal because of your trading?
The more you answer 'yes' to these questions, the more likely you are to have a serious gambling problem. To speak to someone about this, please contact one of the appropriate organisations listed above.
4. GENERAL MATTERS
You will be notified of your categorisation when you open an account. LCG may re-classify you, and it is possible for you to request re-classification. Either way LCG would require your written consent, or LCG will enter into a new written agreement with you.
If you have been categorised as a Professional Client or an Eligible Counterparty you are entitled to request that you be re-categorised as a client that benefits from a higher degree of protection. However, it is your responsibility to ask for this.
When considering your application, classifying and dealing with you, LCG relies on information that you provide. If there is any material change in that information it is your responsibility to advise LCG in writing, eg: change in address, residence, contact details, employment, financial situation etc.
In particular, if you are a Professional Client you are responsible for keeping LCG informed about any change that could affect your current categorisation.
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CFD trading carries a high level of risk to your capital and you can lose more than your initial deposit. CFD trading may not be suitable for all investors so seek independent advice. View full risk warning