Email from Pockit re FCA
I only have fifty pounds on it but I'm not sure what the FCA are up to a d what requirements they need.
Has anyone heard about this?
Comments
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Yes, their services are provided by Wirecard under the bonnet, and they're in the process of going under, so the FCA have frozen their money:
https://forums.moneysavingexpert.com/discussion/6159605/wirecards-missing-2-billion/p1
https://www.fca.org.uk/news/news-stories/requirements-imposed-wirecard-authorisation
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Thankyou. Do you think we will get our money back? And how can the FCA freeze the money that is ours? Doesn't seem right to me.0
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Kris35 said:Do you think we will get our money back?
Are my funds protected by FSCS?
No. The Financial Services Compensation Scheme (FSCS) only applies to certain types of activity which does not include issuing electronic money or payment services.
Under the EMRs and PSRs, there are rules on how customers’ money should be protected and these requirements are known as ‘safeguarding’.
Is there a chance I won’t get my money back? What is safeguarding?
Safeguarding is a key consumer protection measure within the EMRs and the PSRs. The purpose of safeguarding is to protect and return customer money if a firm was to fail.
Wirecard is required under the EMRs to maintain appropriate measures to safeguard customers money. It does this by holding it separate from its own money in accounts with banks (or another credit institution). Effective safeguarding arrangements are critical to help ensure that customers’ money is protected and returned if a firm fails. Adequate safeguarding arrangements which are compliant with the regulatory requirements are a condition of Wirecard’s ongoing FCA authorisation.
Kris35 said:And how can the FCA freeze the money that is ours? Doesn't seem right to me.Our primary objective is to protect the interests and money of consumers who use Wirecard. Following last week’s news of €1.9 billion missing from the accounts of the German company, Wirecard, we immediately placed requirements on the firm’s UK business so that it should not pay out or reduce any money it holds for its customers except on their instructions. We have been working closely with Wirecard UK and other authorities over the past few days to take action that protects consumers. We are continuing to do this and on 26 June, we took additional measures to require the firm to cease all regulated activities in order to further protect customer money. This now means customers money cannot be accessed.
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Eskbanker you are a very helpful poster, thanks. Pity those who have lots of money in these accounts.1
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I think that the money with the providers is quite safe. Wirecard only provided the infrastructure for them to run over and did not hold any money.0
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The FCA has frozen Wirecard, which is being used for payment processing I believe. So your money is not with Wirecard, it should be safe just those companies can't currently process any ins and outs.
Of course, there may be some pre-pay cards that use Wirecard's trustee funds side of the business, that's a less known area at the moment.
Not a fun time, I hope none of the smaller providers end up going under anyway due to being unable to operatePeter
Debt free - finally finished paying off £20k + Interest.1 -
PaulW922 said:I think that the money with the providers is quite safe. Wirecard only provided the infrastructure for them to run over and did not hold any money.
"The card is an e-money product, and as such it is not covered by the Financial Services Compensation Scheme. In the unlikely event that Wirecard Card Solutions Ltd becomes insolvent, your funds may become valueless and unusable, and as a result you may lose your money."0 -
The_Urbanite said:PaulW922 said:I think that the money with the providers is quite safe. Wirecard only provided the infrastructure for them to run over and did not hold any money.
"The card is an e-money product, and as such it is not covered by the Financial Services Compensation Scheme. In the unlikely event that Wirecard Card Solutions Ltd becomes insolvent, your funds may become valueless and unusable, and as a result you may lose your money."0
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