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At Stake, the security of your investment is paramount, and we employ multiple measures to ensure your assets are protected across all aspects of your investing journey.

 

Where is the USD cash held?

Your USD cash is maintained within your U.S. account by DriveWealth. As mentioned, DriveWealth is registered with FINRA (U.S. regulator) and is a member of SIPC, which protects your cash holdings up to US$250,000. This includes all transfers into your account, trade settlements, dividends and other corporate action-related distributions in your Stake Wall St account balance until you make a trade, transfer or withdrawal.

Wall St Share Ownership (US)

For your US share investments, Stake operates a custodian model. While your shares are held on your behalf by our US broker-dealer partner, DriveWealth, LLC, you remain the beneficial owner.

DriveWealth is responsible for the custody of your cash and shares and maintains the records that identify the shares you own. They use sub-custodians like the Depository Trust Company (DTC) for US shares and the Bank of New York Mellon for US funds.

An important layer of protection comes from DriveWealth's membership with the Securities Investor Protection Corporation (SIPC). This protects Stake investors who own US securities for up to US$500,000 (and additionally up to US$250,000 for cash claims), regardless of your citizenship.

It's crucial to understand that the SIPC protects against the failure of a brokerage firm, not against any loss that may eventuate from your investing decisions. In the unlikely event that Stake were to cease services, you would still retain all your cash and securities via DriveWealth.

Regulatory Oversight and Internal Measures

Beyond the specific mechanisms for share and cash holdings, Stake operates under robust regulatory frameworks. We are regulated by the Australian Securities and Investments Commission (ASIC), which sets strict standards for handling and protecting client funds.

Your funds are held in a segregated client trust account with a major Australian bank, entirely separate from Stake's operating accounts. This means your money isn't used for Stake's business operations and is protected in the unlikely event of Stake's insolvency. We also utilise industry-standard encryption and security protocols to protect your personal and financial information.

 

Compensation Arrangements
 

Stake holds Professional Indemnity Insurance cover for the activities conducted under its Australian Financial Services Licence in compliance with the requirements of s912B of the Corporations Act 2001 and Regulatory Guide RG126.