Client funds are protected through a process known as safeguarding, essentially using segregation of 100% of client funds from Pay Set's own funds. Segregation of funds is one of two safeguarding methods available to EMIs under the applicable UK legislation. We place all safeguarded funds in a safeguarding account with an authorised bank in the European Economic Area in compliance with the regulatory requirements.
Please note that protection available by Financial Services Compensation Scheme (FSCS) does not apply to client funds held by EMIs, however as noted, client funds are separated from Pay Set's funds in a safeguarding account held with an authorised credit institution and are appropriately identified and managed on a daily basis.
It is our responsibility as an EMI to have appropriate and well-managed safeguarding arrangements so that in the event of insolvency of Pay Set, the segregated funds held in the safeguarding account will NOT be considered Pay Set's funds and shall be used, to the greatest possible extent under such circumstances, for distribution to Pay Set's customers in a timely and orderly manner.
For more details on the levels of protection, please refer to the FCA’s website at the following link.
For any clarification regarding the above, please contact us at firstname.lastname@example.org or at +44 20 8068 0921