PSD2 Safeguarding - insurance option

Authorised Payment Institutions (APIs), Authorised E-Money Institutions (EMIs) and Credit Unions that issue e-money have a responsibility under the Payment Services Regulations 2017 (PSD2) and Electronic Money Regulations 2011 to protect customer funds in priority to other creditors if they become insolvent. This is known as ‘Safeguarding’ and the regulations offering three different Safeguarding methods: 1) segregation; 2 using an insurance contract: or 3) a comparable guarantee.  

PSD Bond is the first and, we believe only, insurance contract that meets the requirements of the Payment Services Regulations 2017 and Electronic Money Regulations 2011.  Pioneered by Protean Risk, the insurance contract is underwritten by major insurers, including Lloyd's of London, all providing Standard & Poor’s or equivalent ‘A’ rated financial security. 

Deploying PSD Bond as an alternative or complementary method of Safeguarding delivers multiple benefits to APIs and EMIs including reducing their risk and the costs of capital associated with Safeguarding client funds in segregated accounts. It’s equally proven to be financially competitive when compared with bank guarantees.  It’s why it is being adopted by a growing number of firms in the sector including some of the best known brands.  With our experience of the Payments sector and Safeguarding, we can answer questions you may have, help you identify the benefits and guide you through the regulatory process to successfully deploy the insurance method.   

Key contacts

Tristan Sargeaunt, Dip CII
Director, Fintech and Payment Services

020 3763 5352
tristansargeaunt@proteanrisk.com

New enquiry

 

We are members of the Emerging Payment Association and the Association of Foreign Exchange and Payment Companies:

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What our clients say

We were introduced to Protean by the firm who were helping with FCA authorisation. They really understand the PII cover requirements for PSD2 and were very quick to review our business model and services. They provided multiple options with comparisons which helped us to clearly understood and choose appropriate risk cover. We surely continue to use and recommend them.

We were introduced to Protean by a trusted partner in 2016 and have worked with them ever since. As experts in Fintech Insurance, they provide a high level of technical expertise, coupled with excellent service. Protean are well connected in the Fintech arena and are also a useful sounding board on broader risk and insurance matters.

Find out why clients choose us

Latest thinking

Association of Foreign Exchange and Payment Companies
21 OCT
News / by Tristan Sargeaunt, Dip CII
Association of Foreign Exchange and Payment Companies

Protean Risk join AFEP Read more...

Emerging Payments Association
15 OCT
News / by Tristan Sargeaunt, Dip CII
Emerging Payments Association

Protean Risk join the EPA Read more...

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