How is my money safeguarded under the FCA’s Electronic Money Regulations, when FSCS doesn’t apply?

Funds received in exchange for electronic money will be safeguarded (i.e. protected) in accordance with the FCA’s e-money rules. We refer to this as “Protected Money”.  Protected Money is held in separate bank accounts kept apart from business bank accounts. Protected Money might also be covered by an insurance policy from an insurer. Money is protected so that if the Electronic Money Institution (EMI) becomes insolvent or stops trading, or if a financial claim is made against them, creditors and claimants can’t get access to Protected Money. Protected Money is not covered under the FSCS but would be reclaimable under the FCA’s Electronic Money Regulations. More information on e-money rules can be found here.

‍Safeguarding Arrangements

‍When funds are posted to your account, e-money is issued in exchange for these funds, by an EMI. In line with regulatory requirements, the EMI safeguards your funds. This means that the money behind the balance you see in your account is held at a reputable bank, and most importantly, is protected for you in the event of the EMI's, or our, insolvency.


Our savings accounts: GB Bank Base Rate Tracker and Notice Accounts

Bondsmith is the EMI that facilitates the transactions between you, our client, and GB Bank, who holds your money on our behalf. As Bondsmith is an FCA approved EMI, all monies are held in a separate safeguarding bank account with HSBC and then transferred to GB Bank no later than the end of the next banking day, at which point the FSCS deposit guarantee cover applies. EMIs cannot be FSCS protected as they are not banks, however, funds will be safeguarded (i.e., protected) in accordance with the FCA’s e-money rules.