As of 1 January 2016, the scope of the new European directive, replacing the "Savings Directive", requiring the automatic exchange of information between countries will be expanded.
Any account open on 1 January 2016 with a financial institution and held by an account holder not domiciled in the country in which the financial institution is located, must be declared by the financial institution to the tax authority. The information transmitted about the account includes financial income (such as capital gains or dividends) and account information such as information related to the account holder(s), the account balance as at 31 December or as at the date of the closing of the account and the account number. This information will be transmitted starting in 2017 for 2016 (or later depending on the agreement between the country in which the financial institution is domiciled and the country in which the client is domiciled). The information exchange concerns E.U. countries as well as non-E.U. countries which have decided to participate.
More information on the automatic exchange of information can be found in this document from the OECD website.
Deposit custody
Client monies are received on omnibus bank accounts, designated as "client account", opened by WH SelfInvest S.A. (hereafter "WHS") acting as agent. Client monies are subsequently transferred to segregated bank accounts of the relevant WHS counterparties to be able to execute client orders on futures, US stocks and options. These accounts are held either in the UK, for Freefutures, or the USA, for Freestoxx.
A list of banks, in which the client monies are held, is available on this website by clicking on "Clients".
Deposit protection
Client monies are segregated from our company’s monies and are accounted for on an individual basis.
In the case of failure of a bank in which the client monies are held, clients are protected as follows:
Client monies deposited in Luxembourg: the "Deposit Guarantee Fund Luxembourg" (FGDL) reimburses the amount of guaranteed cash deposit up to a maximum value equivalent to € 100.000 per depositor per firm.
Client monies deposited in the United Kingdom: the "Financial Services Compensation Scheme" (FSCS) reimburses the amount of guaranteed cash deposit up to a maximum value equivalent to £ 85.000 per depositor per firm.
Client monies deposited in the United States of America: the "Federal Deposit Insurance Corporation" (FDIC) reimburses the amount of guaranteed cash deposit up to a maximum value equivalent to $ 250.000 per depositor per firm.
Investment protection
In the case of failure of a bank or an investment company, clients are protected on their claims arising out of investment transactions, i.e. the instruments belonging to the investors and held, administered or managed on their behalf in connection with investment business as well as the money owed to or belonging to investors and held on their behalf in connection with investment business. Clients are protected as follows:
In the case of WHS’ failure: the “Système d’indemnisation des investisseurs Luxembourg” (SIIL) reimburses the amount of guaranteed investments up to a maximum value equivalent to € 20.000 per investor.
In the case of a UK investment company failure: the FSCS reimburses the amount of guaranteed investments up to a maximum value equivalent to £ 85.000 per investor per firm.
In the case of a USA investment company failure: the "Securities Investor Protection Corporation" (SIPC) covers up to $ 500.000 per account type, of which a maximum of $ 250.000 for missing securities and a maximum of $ 250.000 for missing cash.
The company is conscious of the necessity that it should deliver its services to clients with care, knowledge, precision and that in doing so it must act in the client’s best interest. The company will take all reasonable steps to identify potential conflicts of interest between the interest of the firm (including its managers, employees and, if applicable, its tied agents) and its duties owed to its clients, as well as between differing interests of two or more of its clients, to each of whom the institution owes specific duties. This requirement is an obligation of means, not of results. As a basic principle the company will put the interests of its clients before any other interest.
The company, based on the nature of the services it provides, has identified the below situations which could potentially generate a conflict of interests. The company has policies and procedures in place which avoid these situations. The company equally has policies and procedures in place which monitor the arising of situations with a potential conflict of interests so they can either be avoided or the company can act in the best interest of the client. Where the organizational and administrative provisions that have been taken are not sufficient to ensure that the interests of the client are not damaged, the company shall, before acting on behalf of the client, disclose to the latter the nature, and, where applicable, the source of the remaining conflict of interest. This communication may be of a general nature.
(a) The institution is likely to make a financial gain, or avoid a financial loss, at the expense of the client. The company does not routinely have situations of this nature. Any such potential case should be reported to the management of the company which will deal with it in respect of all applicable rules and regulations.
(b) The institution has an interest in the outcome of a service provided to the client or of a transaction carried out on behalf of the client, which is distinct from the client’s interest in that outcome. The company does not provide investment advice offering clients to invest in a particular financial instrument for the short or long term.
(c) The institution has a financial or other incentive to favor the interest of another client or group of clients over the interests of the client. The company does not divide its clients into client categories based on criteria such as account size or order volume (e.g. platinum, gold, silver and bronze clients). All clients have access to all services and all financial instruments the company provides. Each order is handled in the same way according to the same procedure. All clients deal at the same spreads and are charged the same commissions, unless they benefit from a volume discount. All clients have access to the same support desk and each client query is dealt with following the same procedure.
(d) The company carries on the same business as the client. The company does not carry on the same business as the client. It does not engage in proprietary trading.
(e) The company receives or will receive from a person other than the client an inducement in relation to a service provided to the client, in the form of monies, goods or services, other than the standard commission or fee for that service. The company does not maintain any contractual relationship with suppliers or other parties which result in an inducement of a monetary or other nature.
Any other (potential) case of conflict of interest should be reported to the management of the company which will deal with it in respect of all applicable rules and regulations.
WH SelfInvest informs clients that in case they open an account based on a third party recommendation WH SelfInvest may pay this third party fees or commissions either fixed or calculated based on transactions performed by clients.
No fees or commissions are provided to WH SelfInvest by these third parties.
WH SelfInvest commits to provide any further information based on client request.
Regulations specify that brokers cannot pay inducements to existing clients for having introduced another client.