Captiva is proud to have partnered with Currency Cloud to enhance our client offering and position ourselves at the forefront of the FX industry, giving us a competitive edge. Furthermore, our relationship enables us to deliver an enhanced level of security for our customers. All client funds are safeguarded by our FCA-regulated partners.

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What is Safeguarding?

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"Safeguarding" is a practice enforced by regulators in the UK and Europe to protect client funds. Currencycloud is required by law to separate clients' money from its own funds. By doing this, it ensures that if anything were to happen to Currencycloud, client money would be 100% safe and protected.

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To explain in more detail: once an e-money institution receives your money, it must either place it in a dedicated "safeguarding account" with a bank or invest it in low-risk assets that the regulator has approved as an alternative to cash. Less commonly, it may protect the money with an insurance policy instead. Your money must stay in these accounts or investments until you spend it.

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The protection this provides means that if an e-money institution fails, there is a pot of money (the safeguarding account) sufficient to pay all customers the money they are owed. These safeguarding accounts are protected by law from other creditors of a failed e-money institution. The only thing that can be paid from these safeguarding accounts before the customers are paid back their e-money, is the cost of the receiver (the person who’s appointed to manage the closure of a failed company).

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How Is Safeguarding Different From FSCS Protection Given by Banks?

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When you keep money with an e-money institution, it’s safeguarded instead of having FSCS protection (which is sometimes referred to as "deposit insurance"). The main difference between FSCS protection and safeguarding is that FSCS protection is covered by an independent statutory organisation while safeguarding protection is provided by the e-money institution itself.

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Suppose an FSCS protected firm were to fail. In that case, this independent organisation is legally obliged to pay back their funds to eligible customers up to the maximum compensation amount (normally £85,000 for consumers). This will happen whether the FSCS protected firm has that money itself. This pay-out would generally occur within seven days.

If an e-money institution fails (such as Currencycloud), the customers' claims will be paid from the safeguarding account. This is because the e-money institution cannot lend the money it has received from one person to another, so it must have enough money in its safeguarding accounts to cover its debts to its customers. Currencycloud is obliged by law to maintain all clients' money in dedicated safeguarded accounts - separate from corporate funds. This creates significantly better protection from insolvency and is not limited by the £85,000 limits. Simply put: your money is protected at all times.

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At Captiva we take the security of our clients' money and data very seriously. Additional details of our Safeguarding Policies can be found here.