Communications and Information
Client communication
- We always aim to communicate in a way that is fair, clear and not misleading.
- But, what this means can differ by category. For Retail Clients, information is usually simpler and more frequent. Professional Clients may get more technical information and fewer reminders.
Client information
- For MiFID business, we give set information (including on costs and charges) to both Retail and Professional Clients.
- PRIIPs Key Information Documents (KIDs) are required for Retail Clients only. KIDs are generally available on our website.
Client assets
- The FCA's client asset rules (known as CASS) set out how firms must hold and protect client money and assets.
- CASS gives more detailed protections to Retail Clients than to Professional Clients. For example, a Professional Client may be able to agree to a wider range of arrangements for the holding of their assets. These may carry different levels of risk.
- If you become a Professional Client, the protections for how we hold your money and assets may be less than those you have as a Retail Client.
Appropriateness and Costs
Appropriateness
- We are an execution‑only firm and do not give personal investment advice.
- Where an appropriateness check is needed, we look at whether a product or service suits you. We warn you if we believe it does not, or if we do not have enough information.
- For some simple, “non‑complex” products that you ask us to trade on your own initiative, we do not have to run this check, and we will tell you when this applies.
- For a Professional Client, the rules let us assume that you have the knowledge and experience for the products and services for which you are classified as professional. So, we usually ask for less information and are less likely to issue warnings.
Costs and charges information
- We give ex‑ante (before the transaction) and ex‑post (after the transaction) costs and charges information in line with MiFID provisions, to both Retail and Professional Clients.
- Some rules on how this information is shown apply only to Retail Clients. So, the format may differ.
Order Execution and Best Execution
Order execution and reporting
- If you are a Retail Client, IBUK tells you quickly if we spot a problem that affects your order. This does not apply in the same way to Professional Clients.
- The time limit for sending you trade confirmations is stricter for Retail Clients than for Professional Clients, although we seek to provide confirmations promptly to all clients.
Best execution
- For Retail Clients, the most important factor in best execution is usually the total cost. This is the price of the instrument plus execution costs.
- For Professional Clients, we are permitted to consider other factors (such as speed or likelihood of execution) as well. In practice, IBUK uses a similar approach to both categories but may give relatively more weight to those other factors for Professional Clients where appropriate.
Product Protections
CFDs and other restricted speculative investments
- For Retail Clients trading certain products such as CFDs, we must apply specific protections, including:
- Leverage limits on new positions;
- Mandatory margin close‑out when margin falls to 50% of the required minimum;
- Negative balance protection on a per‑account basis;
- Restrictions on incentives to trade CFDs; and
- A standard risk warning.
- These protections do not apply to Professional Clients.
Compensation and Disputes
Compensation
IBUK is a member of the UK Financial Services Compensation Scheme (FSCS). You may be able to claim from the FSCS if we cannot meet our obligations to you.
Whether you can claim depends on:
- the type of claimant you are;
- the nature of the business; and
- the circumstances of the claim.
We provide the disclosures required by the FCA’s rules. Full eligibility is set by FSCS rules. More information is available at: https://www.fscs.org.uk/.
Financial Ombudsman Service
The Financial Ombudsman Service (FOS) is a free, independent service for settling disputes with financial firms. Certain Retail Clients, such as consumers, small businesses, or individuals acting outside their trade or profession, may refer complaints to the FOS.
If you become a Professional Client, you may lose access to the FOS. This does not apply if you otherwise fall within an eligible complainant category. Think about whether this is acceptable before asking to switch.
More information is available at: https://www.financial-ombudsman.org.uk.