Even though typical deposit insurance schemes all over Europe give a degree of protection, their customers still want more to put their minds at rest.
With the new developments in the world of broking in Europe and across the globe focused on high-end and professional customers, brokers have not been finding it easy at all. This became more obvious after the EMSA adoptions in 2018.
On the one hand are clients who are very satisfied with the conventional insurance from the United Kingdom Financial Services Compensation Scheme (FSCS) and the Cyprus Investor Compensation Fund (ICF). On the other hand, are those who are totally not satisfied with the current provisions, and they want more protective measures in place for their investments.
There are many ways this can be handled in the market, but they are not all on the same pedestal. This increases the scope of risks for the retailers and professional customers of the brokers. This is particularly true of cases where wrong advice is given on the online platform of the broker regarding insurance. Some of those are put in place so as to give effective protection to the investors and not the end-customers who are keeping the funds with the company.
Trends in the London Insurance Market
Following the Great Financial Crisis, lobbyists in London swung into action to build a product for the retailers. This was in response to the brokers and dealers in the United States coming up with a product known as the excess Securities Investor Protection Corporation (SIPC).
Also known as excess FSCS insurance, the purpose was to get the underwriters to give extra layers of security and protection to the customers and traders. This is in addition to providing a higher level of trust and confidence in the market as a whole.
In recent times, the transformations going on in the regulatory circles of the foreign exchange and brokerage industries, companies are also evolving in response. For instance, those who have their regulators based offshore are now seriously looking within on strategies they can put in place to make their clients satisfied.
But some brokers are very proactive by making use of existing insurance policies to create their own niche. The new layers of protection provided are used for both old and new customers. For the brokers in Australia, they have started checking out the alternatives. This was also a response to new moves embarked upon by the local regulators, failure to do means falling behind in the changes taking over the sector.
For example, there is one company that has shown seriousness in pleasing the clients, and this is none other than ActivTrades. This is one company that is doing all that is possible to offer more protection for their customers and their assets according to Juan Scarabino who is their finance director; their insurance packages are available to customers on all the marketing platforms. This is true for those who are based within or outside the European Union.