What does safeguarding mean?
Your money is safeguarded by the EMI we work with, in accordance with the Electronic Money Regulations, 2011.
Electronic money accounts are not bank accounts and therefore the UK’s Financial Services Compensation Scheme (FSCS) does not apply to your Winvesta MCA. However, we adhere to the legal requirements under the Electronic Money Regulations which are designed to ensure the safety and liquidity of funds deposited in e-money accounts.
The Electronic Money Regulations require EMIs to keep relevant funds segregated from any other funds that it holds by placing them in a separate account with an authorised credit institution i.e., a bank. This process is called “safeguarding of relevant funds''. This means that your funds must be segregated from the accounts that the EMI uses to run its business and operations.
The safeguarding account(s) are held with Barclays Bank PLC. Note that Barclays does not monitor the funds that are placed on the safeguarding account or how the accounts are operated. Unlike the GBP 85,000 FCSC protection that UK banks get, there is no cap on the cash that is safeguarded in the e-money accounts.