The European Securities and Markets Authority (ESMA) announced its decision to implement intervention measures which include restricting leverage available to retail clients to between 30:1 and 2:1, according to the volatility of the underlying asset traded. These changes were implemented on 1st of August 2018.
These restrictions do not apply to professional clients. While lower margin rates will be available to professional clients, it is important to note the risks associated with this.
LCG Limited (hereinafter as “LCG UK”) will hold and maintain an amount equal to your account value for each account you hold with us in a segregated client money bank account unless both parties agree to Title Transfer of funds under separate documentation
As an individual, you are eligible for FSCS protection on up to £85,000 that you hold with us if you are registered under LCG UK.
As an individual (consumer) and client of LCG UK, you may be able to use the FOS should you not be satisfied with the outcome of a complaint to us.
You retain the right to request a different categorisation at any time, for example if you wish to be afforded a higher level of regulatory protection.
LCG UK is not required to provide you with the current risk warnings we must provide to retail clients or any standardized risk warning that is introduced in future in relation to transactions in complex financial products.
LCG UK is required to restrict leverage to between 30:1 and 5:1 on the products we offer to retail clients. Higher leverage available to professional clients can work against investors and losses can exceed deposits.
Retail clients benefit from negative balance protection that has been introduced by ESMA. This requirement is already available for all retail clients registered under LCG CY. However, this functionality will not be available to professional clients whose accounts may fall into deficit.
Some Conduct of Business rules such a client communications and order execution may differ from those provided to retail clients.Professional clients are also expected to have an assumed level of understanding