Safeguarding funds

Smart Currency Exchange Limited does not earn interest on client money held in safeguarded accounts, in accordance with the Payment Services Regulations 2017.

As no interest is earned, we are unable to “pass on” interest to our customers on any funds held on their behalf.

We will only hold customer’s money for as long as is reasonably permitted in the foreign exchange contract delivery process. We will always deliver customers money as per the agreed contract. If there is a specific reason we are unable to deliver customer funds held in safeguarded accounts, we will contact you in person to arrange their secure return. Please note it is important that you always provide us with accurate onward beneficiary details to enable us to transfer your funds to your desired account efficiently, and to avoid the necessity to hold funds for longer than is necessary.

These regulations are in place to protect your funds at all times and benefit customers by:

1. Avoiding any conflict of interest. There is no financial gain to hold client money for longer than is compulsory.
2. Minimising risk. There are strict rules on which banks or approved institutions are permitted to hold client money. These are approved by the FCA and deemed low-risk.
3. Complying with regulations. Prohibiting interest earnings aligns with the FCA’s objective of holding client money securely.
4. Protecting against any form of insolvency of Smart Currency Exchange Limited.
5. Being fair, open and transparent: Safeguarding accounts are not a means for businesses to generate additional revenue.

Please also refer to our full Terms and Conditions which outline in further detail our responsibilities under the Payments Services Regulations, safeguarding rules, and conditions of customer contracts.

For customers based in the US or EEA, payment services may be provided by The Currency Cloud Limited (Currencycloud), on behalf of Smart Currency Exchange Limited (SCEL). Please find more information here.

When funds are posted to your account, e-money is issued in exchange for these funds, by an Electronic Money Institution who we work with, called Currencycloud. In line with regulatory requirements, Currencycloud safeguards your funds. This means that the money behind the balance you see in your account is held at a reputable bank, and most importantly, is protected for you in the event of Currencycloud’s, or our, insolvency. Currencycloud stops safeguarding your funds when the money has been paid out of your account to your beneficiary’s account.