Is ninety nine safe?


#1

Of course.

We have been working almost a year and a half to secure our broker-dealer license and European passport who will allow us to operate as a financial intermediary across all European Union.

Here are the ways that we plan to keep your money and investments safe:

  • Supervisor: we will be supervised by the Spanish Financial Authority (CNMV) under European regulations (MiFID II)

  • Funds guarantee : we will be a member of the Spanish Guarantee Fund (Fogain) which covers up to 100.000€ per account.

  • Custody : both your cash and financial assets will be custody by one of the largest banks worldwide. We will announce it on the launch date.

  • Accounts segregation : our accounts, as a company, have been fully segregated from our investor’s accounts so that your money is safe in any case of default or fraud.

  • Access to your account : your account will be secure with a two-factor authentication so that you, and only you, will be able to open your account or trade (buy/sell) with it.

If you think that anything else could be / should be done from our side. Please, please, please let us know.

Keeping your hard-earned savings safe is our TOP priority.


#2

I know that Ninety nine’s bankruptcy is an event than none of us want at all, and I really wish that it never happens. But unfortunately it is something that I must take into account to protect my money…

So, it would be great if you could clarify something: the company accounts remain segregated, but is that for the cash in the account, or also for the stocks? I mean, for example, lets say that in my account in Ninety Nine I have assets with value:

  • Cash: 120.000€
  • Stocks: 1.000.000€

In the (extremely unlikely!) case of a Ninety Nine bankruptcy, what would happen with:

  • Cash: I guess that I’d keep 100.000€ (thanks to Ninety Nine being registered in Fogain), and I’d lose 20.000€
  • Stocks: Would they be transferred to another broker, or would I lose all my stocks with a price of 1.000.000€? Is this something that comes from some Spanish regulation or would I need to just have faith in Ninety Nine internal procedures?

#3

@Restal yes, on an extreme event of bankruptcy this would happen:

    • All your stocks would be transferred to a third-party broker at your full disposal
    • Your cash will automatically be covered by Fogain up to 100,000€
    • Since your money is being kept on a segregated account, the company liquidator will give back all the money to our clients based on their account balances after the liquidation event

Furthermore, as proposed by our community, we are internally discussing whether or not to offer a premium coverage for this additional cash ( >100.000€).


#4

This is great. Safety is always first, lots of thanks for your answer.