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PU Prime regulation: what happens if the firm fails

The licence is what decides where your money sits and who is obliged to do something about it. Here is who licenses PU Prime and what the protections are.

Facts last checked . Read the full PU Prime review.

Regulation and safety

Regulated by
Seychelles FSA (SD050); Mauritius FSC (GB23202672); South Africa FSCA (52218); UAE CMA (20200000388)
Regulator tier
Tier 2
Register entry
Relevant FSA/FSC/FSCA/CMA registers
Client money segregated
Yes
Held at
Not publicly specified
Negative balance protection
Yes
Compensation scheme
No statutory investor compensation scheme identified for primary international entities
Audited by
Not prominently disclosed
Not available to
Includes United States, Singapore, China, Philippines, FATF-blacklisted countries and sanctioned regions

Check the licence yourself: the Seychelles FSA list of regulated entities, the Mauritius FSC register of licensees, the FSCA search of financial services providers.

What this means

The licence is what decides where your money sits and who is obliged to do something about it.

PU Prime's licence is offshore (FSC and FSA). Offshore entities typically offer higher leverage and lighter reporting, and compensation schemes do not apply - the trade-off is protection, not price.

The FSCA licenses derivative providers in South Africa without a fixed retail leverage cap, so headline leverage is often higher than an FCA or ASIC entity may offer.

An FSC licence (Mauritius or Belize, depending on the entity) is an offshore authorisation with lighter reporting duties than a tier-one regulator.

An FSA licence here is usually the Seychelles authorisation - an offshore entity, with lighter obligations than a tier-one regulator.

Client money is held separately from the firm's own money, at Not publicly specified. That separation is what makes your balance recoverable if the company fails, rather than part of the pool its creditors divide up.

Negative balance protection applies, so a losing position cannot take the account below zero and leave you owing the broker money.

Covered by No statutory investor compensation scheme identified for primary international entities, which pays eligible clients up to its limit if the firm fails owing client money.

Questions about PU Prime regulation

Is client money segregated at PU Prime?

Yes. PU Prime holds client money separately from its own funds, at Not publicly specified.

Does PU Prime offer negative balance protection?

Yes. PU Prime offers negative balance protection, so a losing position cannot leave you owing the broker more than your account held.

Is there a compensation scheme at PU Prime?

PU Prime's compensation scheme is recorded as: No statutory investor compensation scheme identified for primary international entities. A scheme covers the broker failing, not losses on your trades.

Regulation at brokers under the same regulator

More about PU Prime