FSCS

Moneyfarm is an investment firm and not a bank.

Unlike a bank, we never mix your money or assets with those of Moneyfarm. We follow strict rules set by the Financial Conduct Authority (FCA) regarding 100% protection of client assets.

Moneyfarm, nor any of its partner banks or custodians, can use your money to run its business, to lend to others or pay any creditors; we purely administer your assets on your behalf. In the event of our failure, or the failure of our partner banks or custodians, your assets and investments are protected from creditors. Whilst the value of your investments may change, your money will always be your money.

We operate robust policies, procedures and controls to ensure our records of your assets are accurate. Reconciliations are carried out on a daily basis to ensure the assets being held correspond with your account records. These arrangements are subject to a formal review by our external auditors who subsequently report its assessment of the firm’s compliance with its obligations to the FCA.

In comparison, when your money is deposited with a bank, your money becomes a part of the bank’s balance sheet, leveraged and used for lending for mortgages, credit cards and business loans.

The Financial Services Compensation Scheme (FSCS) is the UK’s statutory deposit protection scheme, designed to protect consumers when financial institutions fail. It provides compensation if a bank, building society, credit union, or certain other financial service providers become insolvent and cannot return customer funds.

Banks and Moneyfarm are both covered by FSCS Protection.

In the unlikely event that Moneyfarm becomes insolvent and there being a shortfall between the assets held and your account balance, eligible customers would also be protected by the FSCS up to £85,000 per claimant.

In addition to segregating your money, our products and services offer different types and levels of FSCS protection:

Our Cash ISA is a Qualifying Money Market Fund (QMMF) investment instrument rather than a bank deposit therefore it is not eligible under the same FSCS deposit compensation scheme as a bank cash ISA. This is because there is a very small possibility that the value of the investment could go down. However, our Cash ISA is protected under the FSCS investment compensation scheme up to a value of £85,000 which works slightly differently from the deposit protection scheme. The FSCS investment compensation scheme does not protect the value of your investment from fluctuations due to market events, but it does protect you in case Moneyfarm or one of our counterparties were to incorrectly segregate or handle your cash or assets, resulting in a loss to you.

Customers may have protection under the FSCS of claims related to misleading advice, poor investment management or misrepresentation with an upper limit of £85,000 per person.

More about the FSCS.