MANAGED CURRENCY ACCOUNTS
Open a Managed Currency Account
Opening a Managed Currnency Account is a straightforward three-step process.
Step One: Discretionary Managed Currency Account Services Agreement & PFQ
Prospective clients will be required to attend a meeting or telephone conference call with an ECU client relationship manager who will discuss ECU’s discretionary currency management services and the Key Facts of the FX Alpha Programme. Information about ECU, its Investment philosophy and process, the risks of currency trading on margin, how a Managed Currency Account works and ECU’s Management Fee and Performance Fee calculations will be given and discussed.
ECU does not provide independent investment advice to retail clients, and private individuals who are prospective ECU Managed Currency Account clients should take independent advice from a professional financial advisor regarding the suitability for them of considering investing in a Managed Currency Account. As part of the client take-on process ECU will require the following documentation:
- Anti-Money Laundering documentation: Certified copy of passport and original utility bill dated within the last three months
- Personal Financial Questionnaire (ECU will complete this with the client)
- Client Agreement for Discretionary Managed Currency Account Services
- Money Laundering documentation for at least two Directors
- Certified copy of the company’s Certificate of Incorporation and Memorandum & Articles of Association.
- Original Board Minutes duly signed off by the acting Chairman and Company Secretary confirming ECU’s appointment and authorizing a minimum of two officers to act on behalf of the company in all the company’s dealings with ECU
- Accounts for the last three years
- ECU’s Corporate Client Agreement for Discretionary Managed Currency Account Services
ECU’s Client Agreement for Discretionary Managed Currency Account Services
To open an Individual or Corporate Account, a Joint Account or a SIPP Account, the client will need to enter into a Client Agreement with ECU, authorising ECU to manage the account with the nominated Account Provider on the client’s behalf under a limited Power of Attorney (as provided by ECU).
The client will need to select the Base or Benchmark Currency (EUR, GBP or USD) to be adopted, the desired Investment Size and the Initial Cash Deposit (also known as Margin) to be deposited with the Account Provider. The Initial Cash Deposit will be determined by the initial leverage factor agreed between the client and ECU. Depending on the client’s own risk appetite, ECU’s requirements and the terms of the Account Provider, this is usually set at a minimum level of between 10% to 20% of the chosen Investment Size.
ECU’s Client Administration team will send to the Account Provider where the account is to be held, a certified copy of the Power of Attorney and the original of the Authority to the Account Provider form (as provided by ECU). ECU will then generate a Confirmation of Authority which represents the Account Provider’s acknowledgement of having received both the Power of Attorney and the Authority to the Account Provider forms.
Step Two: Risk Assessment, Suitability & Classification
ECU will assess Client Suitability and will require a completed a Personal Financial Questionnaire (PFQ). The information may either be provided over the phone (all ECU land lines are recorded) but preferably at the client meeting. In either case, the client will be required to review and sign the PFQ, once completed.
The PFQ will record information on the client’s investment experience, financial position, the proposed investment term, risk profile and investment objectives to ensure that they are compatible with opening a Managed Currency Account in order to gain access to ECU’s FX Alpha Programme.
Step Three: Margin Account Application Form
ECU does not hold client money; all cash and open positions are held in, and traded through, a client’s account at the client’s nominated Account Provider.
If a client already has a margin account with an Account Provider with whom ECU provides Managed Currency Account services, the client will need to enter the Account Provider’s details on ECU’s Client Agreement for Discretionary Managed Currency Account Services.
If a client does not have a relationship with an Account Provider, ECU can provide information about Account Providers with whom ECU operates Managed Currency Accounts. Once the client has selected an Account Provider, the appropriate account opening forms will need to be completed.
When the account has been opened the client will need to fund the account with a minimum of 10% to 20% of the agreed Investment Size, depending upon the Account Provider’s terms.
On receipt of cleared funds into the account, a signed and completed Client Agreement for Discretionary Managed Currency Account Services and satisfactory supporting documentation, ECU will confirm to the client the commencement of its discretionary management mandate via a welcome letter. As part of the welcome letter, the client will be advised of the basis upon which ECU is proceeding and confirm the elements documented in the PFQ.
Corporate clients should contact ECU to discuss the account opening process.
If you have any questions regarding the application process, please contact Client Administration on 020 7399 4600 or email@example.com