How is my money safeguarded under the FCA’s Electronic Money Regulations, when FSCS doesn’t apply?
Funds received in exchange for electronic money will be safeguarded (i.e. protected) in accordance with the FCA’s e-money rules. We refer to this as “Protected Money”. With Instant GIA, CurrencyCloud holds Protected Money in separate bank accounts kept apart from business bank accounts. Protected Money might also be covered by an insurance policy from an insurer. Money is protected so that if CurrencyCloud becomes insolvent or stops trading, or if a financial claim is made against them, creditors and claimants can’t get access to Protected Money. Protected Money is not covered under the FSCS but would be reclaimable under the FCA’s Electronic Money Regulations. More information can be found here.
When funds are posted to your account, e-money is issued in exchange for these funds, by an Electronic Money Institution who we work with, called Currencycloud. In line with regulatory requirements, CurrencyCloud safeguards your funds. This means that the money behind the balance you see in your account is held at a reputable bank, and most importantly, is protected for you in the event of CurrencyCloud’s, or our, insolvency. CurrencyCloud stops safeguarding your funds when the money has been paid out of your account to your beneficiary’s account.