Safeguarding of Client Funds
Whilst St Daniel House Limited trading as SDHFS (the “Company”) takes several measures in order to ensure the maximum protection of the financial instruments and funds that the Company safeguards on behalf of its clients through our service providers.
St Daniel House Ltd is registered with the Financial Conduct Authority as an EMD Agent (Firm Reference Number 902776) as an appointed representative of The Currency Cloud Limited and registered authorised by the Financial Conduct Authority Payment services are provided by The Currency Cloud Limited. Registered in England No. 06323311. Registered Office: Stewardship Building 1st Floor, 12 Steward Street London E1 6FQ. The Currency Cloud Limited is authorised by the Financial Conduct Authority under the Electronic Money Regulations 2011 for the issuing of electronic money (FRN: 900199)
The Prepaid card is issued by Monavate Ltd., pursuant to license by Mastercard International. Mastercard is a registered trademark of Mastercard International Incorporated. Monavate Ltd a company registered in England and Wales whose registered office is at SUITE EF38, The Officers Mess Business Centre Royston Road, Duxford, Cambridge, England, CB22 4QH. Monavate Ltd is authorised in the UK by the Financial Conduct Authority (register reference 901097) under the Electronic Money Regulations 2011 for the issuing of electronic money and the provision of payment services.
As a regulated electronic money institution, The Currency Cloud and Monavate can offer services on your account that enable you to make payments, this is known as an electronic money account and this service is regulated by the UK financial services regulator, the Financial Conduct Authority (FCA). The Currency Cloud and Monavate are not a bank, therefore, the money you hold with us is held separately by a UK Bank appointed by The Currency Cloud Limited and Monavate which is authorised and regulated by the Prudential Regulation Authority (PRA), who regulates all banks in the UK. Whilst your money is held by The Currency Cloud or Monavate’s bank, it is fully segregated, safeguarded and identified as yours. Put simply, whilst your money is held by the bank, it is available to you only and to be used as instructed by you, so when you want access to it, it is available.
This protection continues whilst your money is held by either The Currency Cloud or Monavate’s bank on your behalf and also in the event of The Currency Cloud or Monavate’s business being terminated, however, if The Currency Cloud or Monavate was to become insolvent, administrators that are appointed to manage an insolvency in the UK may use these funds and, therefore, this could decrease the amount of your money held with the bank.
The Currency Cloud and Monavate are not a bank and banks in the UK protect customer deposits differently, as they participate in the Financial Services Compensation Scheme (FSCS) and e-money issuers like The Currency Cloud or Monavate do not. The FSCS is essentially an insurance policy which protects your money in the event that your bank fails or is made insolvent. Currently in the UK, customer deposits with banks, credit unions and building societies are protected up to a maximum of £85,000.00 per eligible person or £170,000.00 for joint accounts, also in the event of an insolvency, administrators would not be able to use any of your money, this could be seen as an advantage compared to the e-money safeguarding of your money. However, banks don’t have to safeguard customer deposits as Monavate does and this might be seen as an advantage for e-money issuers over banks.
If you would like more information about the topics covered in the letter we’ve sent you today, you can visit the FCA’s own website https://www.fca.org.uk/consumers/using-payment-service-providers.
Alternatively, you can contact us directly and we’ll be happy to answer any questions.