Key changes of Revolut Trading Ltd's omnibus account
Contractual relationships
Up until now, you've been dealing with 2 different entities: DriveWealth LLC in the US for order execution and asset safekeeping, and Revolut Trading Ltd in the UK for transmitting orders.
In the new omnibus account model, Revolut Trading Ltd will now manage both tasks under a single agreement, simplifying your contractual relationship. By having a single relationship with Revolut Trading Ltd, you're effectively dealing with one point of contact for all your trading needs.
This allows us to integrate your experience within the Revolut platform.
Account structure
Previously, you held an individual brokerage account with DriveWealth, which meant your assets were managed directly in the US under US regulations.
In the new omnibus account model, Revolut Trading Ltd will hold a collective (omnibus) brokerage account with the third party broker on behalf of all our customers.
Investment protection in case things go wrong
Previously, your instruments were held for safekeeping by our US third-party broker and therefore your investment could qualify for Securities Investor Protection Corporation (SIPC) protection in the US.
In the new omnibus account model, Revolut Trading Ltd is responsible for the safekeeping of your instruments and therefore your investments might qualify for the UK Financial Services Compensation Scheme (FSCS) protection. See further information in this FAQ.
Cash protection in case things go wrong
Previously, Revolut Ltd safeguarded the money in your investment account (i.e. Available to invest' pocket), including funds used to buy US shares or profits received.
In the new omnibus account model, Revolut Trading Ltd will take over this responsibility, ensuring your money is kept separate from its own money. Your funds will be held in a client money account with a regulated bank.