NoaFX Fund Administration

Why NoaFX? > Why NoaFX? > Fund Administration

In a time where brokerage houses, banks and even governments are facing risks of insolvency, one can never be too safe when it comes to safety of their funds.

Therefore, we have taken meticulous care to give you complete comfort in the way your deposits are kept safe with us.

Fund Segregation

Conventional brokerage houses use 1 account as their financial repository. This will be the holding account for all clients' funds, company capital, investors' capital and any other form of deposits. Naturally, all clients' withdrawals and company expenses, such as directors' and staff salary, marketing expenses and company driven investments are based on the same account.

Therefore, unless there are strict financial accounting controls and prudent exercise of financial responsibilities, it won't be very long before expenses run out of control and clients' funds are put at risk. Further, investments made off these funds can be under great peril when managed wrongly. Stories of MF Global and PFGBest come to mind under these very management travesties.

Segregation of funds ensure that both the company's assets and the clients' assets are not maintained under the same account. In case the company becomes insolvent, the clients' funds are off balance sheet and therefore not claimable as they do not belong to the company.

Trust Facility

Though segregated accounts only mean that the accounts are separate, whether there is control as to whether the company can still access clients' funds is a further question to ask. Many firms use the "safety" of segregated accounts to sell their laurels, but how the funds within the clients' deposit account is used is still open to question.

NoaFX has addressed this concern by setting up a trust facility.

Further, as the trustee is also a joint signatory on the bank account holding your funds, there is no permission to withdraw/invest these funds for company's interests.

NoaFX Trust Facility Flow Chart