Measures to safeguard the funds of users | Electronic Money Institution (EMI) | Template for FCA Applications

Users’ relevant funds will be segregated immediately upon receipt and until funds are paid out to the payee or the payee’s PSP. “Relevant funds” are defined in regulation 20 of the EMRs 2011. If separate permissions for unrelated payment services are granted, user’s relevant funds will be also safeguarded in compliance with regulation 23 of the PSRs 2017. The funds will be safeguarded for the benefit of the payer or payee, not for the benefit of another institution in the payment chain.

We will use the segregation method to safeguard users’ relevant funds which will be placed in a separate account from our working capital and other funds with an authorised credit institution and not just segregated in our books or records.

We will segregate the relevant funds by moving them into a segregated account as frequently as practicable throughout the day. If the fees are also received, the fees will be removed from the segregated account as frequently as practicable and in no circumstances such funds will be kept commingled overnight.

If the precise portion of relevant funds and funds received in relation to the non-payment service provided is not known or the amount is variable, we will make a reasonable estimate on the basis of relevant historical data of the portion that is attributable to e-money or the execution of the payment transaction that must be safeguarded.

Our users will receive clear information about whether, when and in what way, funds will be protected and about precisely which services benefit from this protection, to avoid breaching the Consumer Protection for Unfair Trading Regulations 2008.

At the time of the application, we do not intend to invest relevant funds into assets.

The following persons will have access to users’ funds in the safeguarded account:
1. ___________________________________________________
2. ___________________________________________________
3. ___________________________________________________

Enclosed: contract with the authorised credit institution

___________(name)___________ will have oversight of all procedures relating to safeguarding and responsibility for ensuring that every aspect of the safeguarding procedure is compliant.

Our software systems will maintain detailed real-time records of the amounts required to be in the safeguarded account and the users to whom the funds belong. Our computer systems will also carry out at least daily or more frequent reconciliations between our internal accounts and records and those of any third parties safeguarding relevant funds which should result in the amount of funds or assets safeguarded being sufficient but not excessive (to minimise risks from commingling). Any discrepancies or shortfalls will be rectified immediately.

In case of our insolvency, the claims of e-money holders will be paid from the relevant funds and assets that have been segregated in priority to all other creditors.

Safeguarding risks will be monitored on an ongoing basis, gathering suitable management information on safeguarding issues. This will ensure that the rules are consistently applied to new product offerings as our business is developed over time. Our staff will be continually trained on safeguarding issues. Sufficient details and rationale in our decisions in regards to safeguarding of users’ funds will be documented.