Safeguarding (payment and e-money firms) vs Safeguarding reconciliation: what is the difference?
Safeguarding is the duty to protect customer funds. Safeguarding reconciliation is the daily check that shows the funds held match what is owed to customers. The reconciliation is how a UK firm evidences that safeguarding works.
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) | Safeguarding reconciliation | |
|---|---|---|
| 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. | Safeguarding reconciliation means the daily checks UK payment and e-money firms run to show the funds they hold for customers match what they owe. CASS 15 requires internal and external reconciliations on every reconciliation day. |
| Read more | Safeguarding (payment and e-money firms) | Safeguarding reconciliation |
How they work together
Both depend on accurate balances from every account that holds customer money, gathered the same way every 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 perform safeguarding reconciliations. It gathers the balances from every bank and partner account into one view each morning, the inputs a reconciliation needs.
Frequently asked questions
What is the difference between safeguarding (payment and e-money firms) and safeguarding reconciliation?
Safeguarding is the duty to protect customer funds. Safeguarding reconciliation is the daily check that shows the funds held match what is owed to customers. The reconciliation is how a UK firm evidences that safeguarding works.
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 Safeguarding reconciliation?
Safeguarding reconciliation means the daily checks UK payment and e-money firms run to show the funds they hold for customers match what they owe. CASS 15 requires internal and external reconciliations on every reconciliation day.
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
- CASS 15.8 Records, accounts and reconciliations · FCA Handbook
- Safeguarding requirements for payment and e-money institutions · Financial Conduct Authority
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