What does ‘your money is protected by the Financial Services Compensation Scheme (FSCS)’ mean and is my money safe?

Wombat, and our carefully selected partners, are regulated and authorised in the UK by the FCA, which means money you deposit into our accounts is either covered by the FSCS, or safeguarded under the FCA’s Electronic Money Regulations. The Financial Services Compensation Scheme (FSCS) protects you if the financial firm you’ve used has failed and can’t pay your claim. The FSCS covers eligible deposits up to £85,000 per person, per banking group. Read more here.

FSCS does not cover FCA regulated e-money licensed companies such as CurrencyCloud. Funds received in exchange for electronic money will be safeguarded (i.e., protected) in accordance with the FCA’s e-money rules. 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.