How do we protect our clients’ funds?

We use a process called “safeguarding.” This means that any money received from or held for a client is kept separate from Peratera UK Limited operational funds. We do this by using the “segregation method” and depositing client money into accounts known as “safeguarding accounts” at authorised credit institutions or banks or investing it in secure, liquid assets that are low risk and have been approved by the FCA, as an alternative.

In addition to the safeguarded accounts, we also hold segregated client accounts with other banking and payments providers.

Segregated client accounts are not safeguarding accounts and are utilised to facilitate our payments and foreign exchange services. Client funds do not remain in segregated accounts overnight; we ensure that client funds are appropriately held within our safeguarded accounts at authorised credit institutions or banks as explained above.

What happens if Peratera becomes insolvent?

It’s important to note that as an Electronic Money Institution (EMI), we’re not covered by the Financial Services Compensation Scheme (FSCS). However, we’re committed to safeguarding our clients’ funds, and in the unlikely event that Peratera becomes insolvent, the funds held in our safeguarding accounts would be used to pay our clients’ claims (less any liquidator fees) above those of other creditors. Rest assured that authorised credit institutions have no rights over funds in Peratera’s safeguarding accounts.

Are my clients’ funds protected with Peratera UK Limited?

Peratera UK Limited is not an authorised credit institution or a bank, and we only safeguard on behalf of our clients. If you have safeguarding obligations, and you’re holding your customers’ funds with us, please ensure that you comply with the necessary safeguarding regulations and guidance.

For more information on Safeguarding please see Section 10 of the FCA’s Payment Services and Electronic Money approach document.

Peratera UK Limited is an Electronic Money Institution (EMI) authorised by the Financial Conduct Authority under the Electronic Money Regulations 2011 (FRN 1023849) for the issuing of electronic money.