At a time when client deposits and negative balance protection have become very important topics in the industry, ayondo is the first company to address new challenges in a decisive manner. The company shared with Finance Magnates’ reporters that it will be introducing increased client funds protection for all of the customers of its brands.
The ayondo group purchased additional insurance for its clients from the Lloyd’s of London insurance marketplace totaling up to £500,000 ($728,000) per client. While the existing Financial Services Compensation Scheme (FSCS) is already providing protection to smaller investors of up to £50,000, the move is paving the way for ayondo to expand its client base.
At ayondo there is no negative balance funding obligation
The firm is currently providing social trading services from a B2C and B2B perspective, as well as U.K. FCA regulated brokerage services under its ayondo markets brand. In addition, the company has pledged to refrain from pursuing repayment of any negative balances which its clients may incur from trading.
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Commenting on the announcement, the company’s CEO Robert Lempka said, “By enhancing its client security, ayondo aims to respond to the most pressing customer issues – yes, your money is protected by an additional client money insurance of up to GBP 500,000 and no, at ayondo there is no negative balance funding obligation.”
ayondo is taking advantage of the changing marketplace and is aiming to differentiate its offering from remaining brokers out there. The protection covers all clients who are eligible for FSCS compensation.
Social trading should become more attractive for customers who want to invest large sums
After becoming relatively well known in the retail trading space, the company is focusing some efforts on attracting higher net worth clients. Commenting on the announcement, Managing Director of ayondo group, Sarah Brylewski, said, “Through these safety initiatives modern forms of investment such as Social Trading become even more attractive for customers who want to invest large sums.”
Aside from providing free insurance on accounts of up to £500,000, the company is also extending an offer to those investors who are willing to commit even more. Mrs Brylewski explained, “The maximum sum of GBP 500,000 may even be raised individually for customers on request, subject to a nominal fee.”