Are clients’ funds covered by the Financial Services Compensation Scheme (FSCS)?

Our safeguarded client account is with one of the City’s most conservative private banks which is FSCS protected. Nearly as old as the Bank of England, it is authorised by the Prudential Regulation Authority (PRA) and regulated by the Financial Conduct Authority and the PRA. Funds are held on deposit at the Bank of England. If this bank were to fail, FSCS may be able to step in and pay compensation in respect of those safeguarded funds.

Security for Expenses Ltd. itself is not covered by the FSCS because it is not a bank, building society or credit union.

However, as an FCA registered Small Payment Institution, we keep your money in a safeguarded client account reserved for customer money so security money held is not part of the company’s assets. This means your money remains your money and is segregated from the money we use to run the business. In the unlikely event that Security for Expenses Ltd. was to become insolvent, the money would still  be available to repay the person that gave the security and any third party as directed in the release mechanism.