A custodian or custodian bank is a financial institution that holds customers’ securities for safekeeping to prevent them from being stolen or lost. The custodian may hold stocks or other assets in electronic or physical form. Since they are responsible for the safety of assets and securities worth hundreds of millions or even billions of dollars, custodians tend to be large and reputable firms.
At VT Markets, clients’ funds are held in a segregated account with Australia’s AA rated Commonwealth Bank of Australia (CBA). CBA is the largest financial institutions in Australia with a market capitalisation of $120 billion and over 16 million customers, they are constantly ranked in the top 20 list of safest banks in the world.
Indemnity insurance is a supplemental form of liability insurance specific to certain professionals or service providers. Insurance professionals provide counsel, expertise, or specialized services. Also referred to as professional liability insurance, indemnity insurance is nothing like general liability or other forms of commercial liability insurance that protect businesses against claims of bodily harm or property damage.
Indemnity insurance protects against claims arising from possible negligence or failure to perform that result in a client’s financial loss or legal entanglement. A client who suffers a loss can file a civil claim. In response, the professional’s indemnity insurance will pay litigation costs as well as any damages awarded by the court.
In accordance with our regulation, VT Markets have professional indemnity insurance in place which covers the work done by our representatives, employees and authorised representatives.