Lord Prime's About page tells you your money sits in major banks, separately from company accounts. Risk Disclosure clause 4.3 says a third party may keep it in a shared account, and that if that party fails you hold only an unsecured claim.
Why this matters
An unsecured claim means you queue behind secured creditors for money you thought was ring fenced. Clause 4.3 adds that you may not get enough back to cover your claim, and clause 4.4 lets a depository hold a security interest over your funds.
Exhibit 1Every flagged clause gets its own number so you can point at this one. The number does not change, so a link to it keeps working.CriticalHow much this clause can cost you, in our reading. Critical can take your money or your profit. Warning can delay or limit it. Notice is simply worth knowing before you sign.Harder than usualHow ordinary this wording looks next to the contracts we read. This is our reading of the clause, not a count of other brokers.
The third party may keep funds in a shared account, and in case of insolvency, the Company may only have an unsecured claim on behalf of the Client. The Client may not receive sufficient funds to satisfy their claim.
Firms licensed by the FCA or CySEC must hold retail client money in segregated client accounts and must not describe it as protected when it is not. This contract says a third party may pool the money and that only an unsecured claim would remain.
LORD PRIME is not licensed by these regulators, so this is a comparison of practice, not a finding of any breach.