Is my money safe?

Published on: 2024-10-17 14:18:21 +0100

Keeping your money safe and secure is Pockit’s top priority. Pockit takes several measures to protect your funds through a process called “safeguarding” - giving you peace of mind. 

Below is an overview of the boring bit in case you’d like to learn more about the technicalities.

1. Regulatory Compliance and Safeguarding

Pockit operates under the regulation of the Financial Conduct Authority (FCA) in the United Kingdom. As an “e-money” institution, we must comply with strict regulatory standards to ensure your money is protected.

Safeguarding Funds: Pockit is required to keep your money in a segregated account with a regulated bank. This means your funds are stored separately from our operational accounts, ensuring that your money is safe and not used for any other purpose.

2. E-balances, Security, PSI-PAY

The money you load into your Pockit account is known as an "e-balance." This balance is held securely in the segregated account and is available for you to spend, transfer, or withdraw at any time. Because these funds are safeguarded, they remain protected and available to you regardless of Pockit’s financial situation.

This may sound similar to what a bank will do with your money when they credit an account or card balance in your name, but PSI-PAY (our partner) is not a bank — it cannot use funds for its own purposes, for lending to customers or as deposits. As a result of PSI-PAY not being a bank, you do not benefit from the protections afforded by the Financial Services Compensation Scheme (“FSCS”)

PSI-PAY is required to get an independent check by an expert at least annually to validate that the safeguarding process is operating properly.

3. What happens if Pockit becomes insolvent?

In the unlikely event that Pockit becomes insolvent, the safeguarding measures ensure that your money remains protected. Since your funds are held in a segregated account, they are not considered part of Pockit’s assets and cannot be claimed by creditors. Instead, the money would be returned to you.

However, it’s important to note that Pockit is not a bank, and as such, your funds are not covered by the Financial Services Compensation Scheme (FSCS). Despite this, the safeguarding regulations provide a strong layer of protection, ensuring that your e-balance is secure even if Pockit encounters financial difficulties. Further information about Safeguarding can be found on the FCA Website.