Module 3 · Chapter 7

Client Money, Client Assets and the Investor Compensation Fund

A broker that holds its clients’ money and shares must keep them apart from its own. This chapter shows where they sit, how they are checked, and what comes back if the broker fails.

≈ 9 min read 8-question test

In this chapter

  • Where Thalvia keeps its clients’ money and investments, and why apart from its own
  • What comes back to clients if Thalvia fails, and what the compensation fund pays
  • How dividends, takeover offers and votes reach clients whose shares sit in Thalvia’s name

7.1Client money and assets in one paragraph

Thalvia holds what its clients own: their cash sits at banks, and their shares, ETFs and leveraged notes sit at Holmbrecht. The law makes Thalvia keep it apart from its own money and check it against the banks’ records regularly. The Client Agreement goes further: Thalvia checks every business day and never uses or lends its clients’ investments. If Thalvia fails, the clients get their investments back, and a fund pays part of anything missing.

Key point

Client money and investments belong to the clients, not to Thalvia. Every rule in this chapter keeps them apart, keeps them traceable and gets them back.

Also in this chapter

  1. Client money: kept apart from Thalvia’s own
  2. Client investments: one account at Holmbrecht
  3. If Thalvia fails: what comes back, and what the fund pays
  4. Dividends, takeover offers and votes
  5. Your job

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