Safeguarding (payment and e-money firms) vs Relevant funds: what is the difference?
Safeguarding is the duty to protect customer money so it can be returned if the firm fails. Relevant funds are the customer money that duty applies to, for a UK payment or e-money institution. One is the obligation; the other is what it covers.
This page explains the rules in general terms and is not legal or regulatory advice. Check the primary source and take advice on how the rules apply to your firm.
| Safeguarding (payment and e-money firms) | Relevant funds | |
|---|---|---|
| In one line | Safeguarding, for payment and e-money firms, means protecting customer funds so they can be returned if the firm fails. Firms either segregate the funds from their own money or cover them with insurance or a guarantee. | Relevant funds are the sums a UK payment or e-money institution receives from, or for, customers to execute payments or in exchange for e-money. They are the funds the firm must safeguard. |
| Read more | Safeguarding (payment and e-money firms) | Relevant funds |
How they work together
Working out relevant funds starts with knowing where every pound of customer money sits, at every bank and partner, each day.
Where Polynopsis fits
Polynopsis is not a safeguarding service and gives no compliance advice. It gives finance teams one read-only view of balances across every bank and partner account, the data safeguarding checks start from.
Polynopsis does not decide what counts as relevant funds. It shows where a payment company's money sits across banks, partners and wallets, which is where working out relevant funds begins.
Frequently asked questions
What is the difference between safeguarding (payment and e-money firms) and relevant funds?
Safeguarding is the duty to protect customer money so it can be returned if the firm fails. Relevant funds are the customer money that duty applies to, for a UK payment or e-money institution. One is the obligation; the other is what it covers.
What is Safeguarding (payment and e-money firms)?
Safeguarding, for payment and e-money firms, means protecting customer funds so they can be returned if the firm fails. Firms either segregate the funds from their own money or cover them with insurance or a guarantee.
What is Relevant funds?
Relevant funds are the sums a UK payment or e-money institution receives from, or for, customers to execute payments or in exchange for e-money. They are the funds the firm must safeguard.
Sources
- The Payment Services Regulations 2017, regulation 23 (Safeguarding requirements) · legislation.gov.uk (The National Archives)
- CASS 15.1 Purpose and application · FCA Handbook
- PS25/12: Changes to the safeguarding regime for payments and e-money firms · Financial Conduct Authority
- Retail Payment Activities Act, sections 17 to 29 · Justice Laws Website, Government of Canada
Know where all your money is.
Polynopsis gives cross-border payment teams one live position across every bank, payout partner, exchange and wallet, including money in flight, and warns before a corridor runs dry.
About Polynopsis
Polynopsis is liquidity management software for cross-border payment companies. The name joins poly, many, and synopsis, a seeing together: one live view of money spread across many banks, payout partners, exchanges and stablecoin wallets, including money in flight, with a warning before any corridor runs dry.
Why it is called Polynopsis · About Polynopsis · Glossary · Corridor runway calculator