Your funds are placed in a segregated account (known as a ‘safeguarding account’) at a bank that meets the local regulatory requirements.
Moorwand Safeguarding Statement
Moorwand is an authorised Electronic Money Institution (EMI), regulated by the Financial
Conduct Authority (FCA) in the UK, it is authorised to provide payment services and issue
electronic money (e-money), subject to the Payment Services Regulations 2017 and the
Electronic Money Regulations 2011.
The e-money balance on your accounts is held by Moorwand at a bank. While this may sound
similar to what a bank does when funds are received into a current account, Moorwand is not a bank and there are key differences you should be aware of:
i) we do not take your money as a deposit to use for our own purposes, or lend to other
customers; and
ii) your e-money is not covered by the Financial Services Compensation Scheme (FSCS).
To ensure your money is safe, we hold your funds in segregated accounts, meaning it is
separate from Moorwand's funds. It is also 'safeguarded', meaning there are assurances from
the bank that in the unlikely event Moorwand was to go out of business the money is protected
for the use of Moorwand customers and could not be used to offset any debt Moorwand may
owe.
Safeguarding is a regulatory requirement for all EMIs designed to protect customers from the
risk of losing funds. Funds are reconciled at least daily and we have to have an independent
expert validate that we are meeting our obligations each year.
In the event of Moorwand becoming insolvent, an insolvency practitioner would be appointed
to return the funds we have safeguarded to customers. This means you would get most of your
money back, except for the costs deducted by the insolvency practitioner for distributing the
money to our customers. In addition, due to the insolvency process, it could take longer for
money to be returned to you than if the account was held by a bank.
More information about using a non-bank payment service provider and the protections they
offer can be found on the FCA’s website at
https://www.fca.org.uk/consumers/using-payment-service-providers
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