Safeguarding statement
Last updated: October 03, 2024
How we protect your money
At Payler, we prioritise the protection of your funds, regardless of which currency you hold.
As a UK Electronic Money Institution (EMI) authorised by the Financial Conduct Authority (FCA) under the UK Electronic Money Regulations 2011, we at Payler protect our client’s funds through a process known as safeguarding, essentially using segregation of 100% of your funds from our own funds used for operating our business.
Segregation of funds is one of two optional safeguarding methods available to Payler under the applicable UK legislation (the other being an insurance policy, which is less common).
This method is compliant with regulatory obligations and is achieved by (i) placing client funds in a ring-fenced account with an authorised credit institution in the UK or the European Economic Area, or (ii) investing them in secure, liquid, low risk assets placed in a separate account with an authorised custodian, or (iii) applying any combination of the two. Such a blend of cash and assets is intended to diversify risk and optimise liquidity.
It is Payler’s responsibility to have appropriate and well-managed safeguarding arrangements designed to ensure that if the Payler fails, the segregated funds, which are kept protected and safe, will NOT be considered the Payler's funds and shall be used, to the greatest possible extent under such circumstances, for distribution to its customers in a timely and orderly manner.
Other creditors of Payler cannot make claims against your protected funds, and the only reason clients may not receive 100% of their funds held under the safeguarding accounts, is where a receiver or another insolvency practitioner (e.g. administrator, liquidator) is appointed to manage the closure of Payler, and in such case before clients are paid back fully, the cost of that practitioner is paid from these accounts, so each client may bear a fraction of this cost.
This is no different from similar circumstances where a bank or any other financial institution holding client funds is declared insolvent and is appointed a receiver or another insolvency practitioner.
You may terminate your agreement with Payler at any time according to our Terms and Conditions for Business Accounts or Terms and Conditions for Payment Processing Services.
In the event of non-compliance with safeguarding obligations, Payler may face penalties as per the Digital Markets, Competition and Consumers Act 2024. Clients will be informed of any issues promptly and in full transparency.
If you believe Payler has not complied with its safeguarding obligations, you may file a complaint according to our Customer Complaint Procedure.
Safeguarding and FSCS protection
Please note that protection available by Financial Services Compensation Scheme (FSCS) does not apply to client funds held by Payler.
The reason for that is that Payler cannot lend their clients’ money, as banks can (and do). Therefore, banks are required by the UK government to insure clients’ deposits by participating in a deposit insurance scheme, which is the FSCS. When a bank fails, it may not have sufficient funds to pay back its clients, as it lent their money. Therefore, the FSCS will step in and pay back up to a certain maximum compensation amount (normally GBP 85,000 for consumers).
Payler is not required to do so as they do not lend money, therefore clients funds are always available for payback in case Payler fails. Instead, as noted, Payler is required to independently apply safeguarding mechanisms.
So, clients' funds are separated from the Payler’s funds either in a safeguarding account held with an authorised bank or as low risk investments held in a separate account with an authorised custodian. Those funds are appropriately identified and managed on a daily basis and remain protected until you decide to use it.
For more details on the levels of protection, please visit the FCA’s website at the following link.
For any clarification regarding the above, please contact us at info@payler.com.
At Payler, we prioritise the protection of your funds, regardless of which currency you hold.
As a UK Electronic Money Institution (EMI) authorised by the Financial Conduct Authority (FCA) under the UK Electronic Money Regulations 2011, we at Payler protect our client’s funds through a process known as safeguarding, essentially using segregation of 100% of your funds from our own funds used for operating our business.
Segregation of funds is one of two optional safeguarding methods available to Payler under the applicable UK legislation (the other being an insurance policy, which is less common).
This method is compliant with regulatory obligations and is achieved by (i) placing client funds in a ring-fenced account with an authorised credit institution in the UK or the European Economic Area, or (ii) investing them in secure, liquid, low risk assets placed in a separate account with an authorised custodian, or (iii) applying any combination of the two. Such a blend of cash and assets is intended to diversify risk and optimise liquidity.
It is Payler’s responsibility to have appropriate and well-managed safeguarding arrangements designed to ensure that if the Payler fails, the segregated funds, which are kept protected and safe, will NOT be considered the Payler's funds and shall be used, to the greatest possible extent under such circumstances, for distribution to its customers in a timely and orderly manner.
Other creditors of Payler cannot make claims against your protected funds, and the only reason clients may not receive 100% of their funds held under the safeguarding accounts, is where a receiver or another insolvency practitioner (e.g. administrator, liquidator) is appointed to manage the closure of Payler, and in such case before clients are paid back fully, the cost of that practitioner is paid from these accounts, so each client may bear a fraction of this cost.
This is no different from similar circumstances where a bank or any other financial institution holding client funds is declared insolvent and is appointed a receiver or another insolvency practitioner.
You may terminate your agreement with Payler at any time according to our Terms and Conditions for Business Accounts or Terms and Conditions for Payment Processing Services.
In the event of non-compliance with safeguarding obligations, Payler may face penalties as per the Digital Markets, Competition and Consumers Act 2024. Clients will be informed of any issues promptly and in full transparency.
If you believe Payler has not complied with its safeguarding obligations, you may file a complaint according to our Customer Complaint Procedure.
Safeguarding and FSCS protection
Please note that protection available by Financial Services Compensation Scheme (FSCS) does not apply to client funds held by Payler.
The reason for that is that Payler cannot lend their clients’ money, as banks can (and do). Therefore, banks are required by the UK government to insure clients’ deposits by participating in a deposit insurance scheme, which is the FSCS. When a bank fails, it may not have sufficient funds to pay back its clients, as it lent their money. Therefore, the FSCS will step in and pay back up to a certain maximum compensation amount (normally GBP 85,000 for consumers).
Payler is not required to do so as they do not lend money, therefore clients funds are always available for payback in case Payler fails. Instead, as noted, Payler is required to independently apply safeguarding mechanisms.
So, clients' funds are separated from the Payler’s funds either in a safeguarding account held with an authorised bank or as low risk investments held in a separate account with an authorised custodian. Those funds are appropriately identified and managed on a daily basis and remain protected until you decide to use it.
For more details on the levels of protection, please visit the FCA’s website at the following link.
For any clarification regarding the above, please contact us at info@payler.com.