Starting your long-term investment plan requires that you feel secure about where your money is going. That’s why, when it comes to opening an investment plan with us, we understand you want to be sure that Sarwa is safe to store your wealth.
Sarwa takes several measures to protect investments in your accounts, such as strict regulatory frameworks, custody and sub-custody structures with top financial institutions like Saxo Bank, Citibank, as well as indemnity insurance.
These measures are regulated by the region’s top financial authorities, which impose strict guidelines that Sarwa – and its partners – must follow.
Ultimately, we are committed to providing our customers peace of mind by following numerous world-class financial regulations that make our services safe, secure, and transparent.
- Dubai Financial Services Authority (DFSA) regulation
- Financial Services Regulatory Authority of Abu Dhabi (FSRA) regulation
- Custodian structure compliance
- Choice of partners that have EU Banking and Investment Directives regulations and an EU-based custody structure.
Below, we’ll explain each one of those measures in greater detail. Let’s review some common questions that will help demonstrate how Sarwa protects your investments.
How safe is the custody of my money with Sarwa?
All assets managed by Sarwa are secured by an elaborate set of guardrails — or protective financial measures — which surround all regulated financial institutions such as Sarwa. Like all reputable financial companies, Sarwa is a regulated entity that is compliant with the region’s top financial authorities.
Sarwa is regulated by the Dubai Financial Services Authority (DFSA) and by the Financial Services Regulatory Authority of Abu Dhabi (FSRA).
That means that Sarwa must adhere to the strict laws and regulations of both entities. We have an Asset Manager License, which has a very high standard of compliance, including strict regular audits. One example of these regulatory requirements is the mandatory separation and segregation of clients’ assets from those of the firm.
Is my investment protected? What happens to my money if anything happens to Sarwa?
Your money is kept entirely separate from Sarwa’s finances and is held at our custodian banks whether it’s in cash or securities. At the same time, regulators closely monitor the firm’s net capital – another requirement that is in place – as a cushion for unforeseen circumstances.
Financial firms are required to perform safety-checks, file detailed financials, and immediately report any problems to regulators. At the same time, Sarwa has Professional Indemnity Insurance (PII) coverage in place that protects it and complies with the requirements of our regulators.
The multi-layered safeguard system that is in place is there to protect investor assets. Brokerage firms and financial institutions must comply with regulations that help shield clients should they fail. One of which is the custodian structure that segregates clients’ assets from the firm’s operational capital. It is also mandatory to maintain a minimum amount of prescribed capital in liquid form. Firms undergo regular audits to ensure anything is flagged right away.
Because of that, historical data shows that in the worst-case scenario of a financial firm going insolvent, and even if you had millions of dollars invested, generally your assets remain whole.
What happens if a financial firm goes bust
Sometimes financial institution fails due to impropriety or through no fault of their own, but often client assets are safe. Usually, another financial firm may buy the firm’s assets, and accounts will be transferred to the new custodian with very little interruption.
Typically, the regulator steps in and appoints a trustee. The firm’s office is closed while the trustee and staff go through all the ledgers and books. In general, customers are notified. Provision is made to transfer the customer accounts back to them or to another brokerage firm. In general, customers are given the choice to continue with the new assigned broker or pick a broker of choice.
What does all that mean for you? No matter what happens to Sarwa as a company, you will have the full ability to legally claim your own assets. You will also always have the option to liquidate your account at any time without any additional fees.
How does Sarwa separate my assets from theirs?
All investment assets managed by Sarwa will always be held in large institutions in accounts that are segregated from Sarwa’s corporate finances. Sarwa holds a completely separate account for its own operations.
This compliance measure is called the custodian structure, which protects our clients’ investments by ensuring the segregation of assets. Since our launch in 2017, it has been one of Sarwa’s top directives to only work with globally reputable partners and banks for these purposes. This mission has helped us further ensure maximum security and transparency to our clients.
Which custodian banks are holding my assets?
Your money is held at custodian banks, whether in cash or securities. Your investable cash and securities are held in a custodian account at the Denmark-domiciled Saxo Capital Markets, where they ultimately sit with custodians such as Citibank. Our custodian account at Saxo Bank is regulated by one of the EU’s top financial regulators, namely Finanstilsynet, the Danish Financial Supervisory Authority. The intermediate local transfers are held in Emirates NBD.
How safe are my assets?
Sarwa manages securities that are held in Saxo Bank in Denmark. As a member of the European Union, Denmark has incorporated the EU Banking and Investment Directives into Danish law. Furthermore, all financial firms are required to perform safety-checks and immediately report any problems to regulators to remain compliant. They also require that banks must file detailed financial records on a regular basis. Banks under this compliance must also report both the firm’s current capital and their client’s current assets under management to ensure the safety and transparency of clients’ assets.
How is my data protected?
We use secure servers and privacy verified by physical security. We adhere to industry standards for protecting and securing your data while having strict internal policies to ensure that we offer the highest level of security.
Our internal team continuously evaluates risks across our platform. Our external security firm tests our security controls to ensure we’re implementing the industry’s best practices. Finally, regulators audit our procedures and processes on an annual basis.
Our platform is secured with 256-bit encryption. We use it to keep your account information safe including all personal information. We also have continuous back-up and firewall technology to ensure that your information is always available.
Have more questions to ensure Sarwa is the safe choice for you?
We understand that safety, security, and transparency must play a crucial role in the management of something as important as your financial future.
If you have any more questions regarding how Sarwa manages your investment plan, please get in touch with one of our wealth associates today, and we’ll be sure to answer you quickly.
Starting a long-term investment plan is an exciting stage in our lives. We are here to make it as smooth and straightforward as possible.