One of the most important company values is maintaining the trust we have with our clients and a fundamental part of this is ensuring that our client’s funds and property are safeguarded from improper use.
OMF holds a Derivatives Issuer Licence in accordance with the Financial Markets Conduct Act 2013 and therefore we must comply with various Client Funds Regulations (“CFRegs”).
The CFRegs require OMF to comply with strict legal provisions about where and how client funds and property are held.
All client funds deposited with OMF are held on trust in one of our client bank accounts where OMF acts as a bare trustee. These accounts are kept completely separate from OMF’s own capital (money). Reconciliations of client assets are reported daily to the NZX, which provides proof that OMF is not using client funds to pay its bills or meet any of its proprietary obligations.
OMF is committed to prioritising the protection of client funds across all of our relationships and we only facilitate our client’s trading with highly rated financial institutions and banks (“Counterparties”).
In addition to our derivatives trading, OMF offers services for trading NZX equities. This service does not fall under the CFRegs but is governed by the Financial Advisers Act 2008 (“FAA”). Under the FAA, all client money that is identified as funds for NZX equity trading must be transferred to a separate client account, which is again separate from OMF’s own capital.
To ensure client confidence in our controls and procedures surrounding the safeguarding of client funds and as prescribed by the CFRegs, OMF engages an external auditor to conduct independent reviews. The auditor must report any breaches immediately to the FMA. In addition to these audits, OMF are also subject to regular audits conducted by the FMA and NZX.
Our current external auditor is PWC.