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International broker accounts could be vulnerable to AU bank crash

Discussion in 'International Markets' started by axyd, Mar 23, 2020.

  1. axyd

    axyd

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    As far as I understand all international brokers are required to keep funds for Australians in Australian banks. Accounts for Australians are special, international brokers handling it not in the same way as other accounts.

    There's a rule specifying that any broker providing service to Australians should held its clients fund in a special way, so called "Authorised deposit-taking institutions" ADI. So seems like funds are held in some sort of Bank Account in Australia, even if the broker is International.

    So it looks like the accounts in international brokers are vulnerable to the Australian bank system crash.

    It seems like it's different for the open positions / shares, only the cash held in ADI, the open positions / shares held somehow internationally and seems to be kinda insulated, but I'm not sure about that.

    So the question is - how to insulate international broker from the possibility of Australian bank system crash?

    P.S.

    Quote from InteractiveBrokers

    How We Handle Customer Assets

    Client money is segregated in special bank accounts (Client Money Accounts held in Trust with Authorised Deposit-taking Institutions ("ADI")) which are designated for the exclusive benefit of Australian customers of IBKR. This segregation is a requirement of Australian Financial Services License ("AFSL") holders and, Interactive Brokers Australia ("IBKR Australia"), as an AFSL holder, fully complies with these principles.

    https://www.interactivebrokers.com.au/en/index.php?f=39138
     
  2. freebird54

    freebird54

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    Yet another worry - beside the fact You can’t get through
    Why can’t we buy BBOZ. BBUS AND BEAR anyone please?
     
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