FCA Electronic Money Regulations
Discussion
A lot of the new finance apps/cards operate under FCA electronic money regulations rather than having the usual banking FSCS £85k deposit guarantee. I understand that this means the funds should be segregated from the companies funds, protecting you in the event that the provider goes bust.
However, presumably this exposes you to the risk that the underlying bank holding the funds goes bust. What would the likely outcome be in the case of bank failure? Would it be unwise to hold a significant balance on one of these products?
However, presumably this exposes you to the risk that the underlying bank holding the funds goes bust. What would the likely outcome be in the case of bank failure? Would it be unwise to hold a significant balance on one of these products?
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