Pioneered by Protean Risk, PSD Bond is the first insurance contract which meets the requirements of the Payment Services Regulations 2017 and Electronic Money Regulations 2011. PSD Bond is supported by major insurers, including Lloyd's of London, giving strong financial security
PSD Bond Insurance is the result of an immense investment of time and resources along with collaboration with specialist Payment Services lawyers and a leading Payment Services compliance consultancy.
The project was initiated mid-2017 when Protean Risk began researching the potential for a product, understanding the requirements of the different stakeholders and addressing questions as they arose throughout the design phase.
PSD Bond usage
The PSD Bond methodology reduces a company’s reliance on segregated client accounts and can be used as an alternative, combined or additional form of protection.
The product brings financial benefits to a business, reducing the cost of capital that is brought with Safeguarding client funds in segregated accounts.
PSD Bond also offers an additional method of protection for both the firm and their clients, ensuring greater safety and mitigating the risk of fraudulent or dishonest acts which could lead to financial loss.
Competitive insurance costs
Insurers will consider submissions on a case by case basis, reviewing the associated risk brought by the applicant company as well as the Limit of Liability requested. However, the minimum premium of this product will be fixed at GBP 10,000 in additional to applicable fees and taxes (effectively totalling just below GBP 15,000).