Keeping Your Money Safe
We take the protection of your money seriously
Important Information
When you add money to your account, we issue an equivalent amount of electronic money (“e-money”) to your account and safeguard the funds received in accordance with applicable regulatory requirements by the regulators in the countries where we operate.
Funds held with us are electronic money (e-money), not bank deposits. They are not protected by the UK’s Financial Services Compensation Scheme (FSCS), Malta’s Depositor Compensation Scheme, or any other deposit guarantee scheme. Instead, customer funds are safeguarded in accordance with applicable regulatory requirements.
Who regulates us?
Andaria Financial Services UK Ltd (AFSUK) is authorised and regulated by the Financial Conduct Authority (FCA) (Firm Reference 933187 ) as an Electronic Money Institution under the Electronic Money Regulations 2011 to issue electronic money (e-money) and provide payment services.
Andaria Financial Services Limited (AFSLEU) (Company number C97170) is authorised and regulated by the Malta Financial Services Authority (MFSA) as a Financial Institution under the Financial Institutions Act 1994 (Chapter 376 of the Laws of Malta) to provide payment services and issue electronic money.
Which entity holds your account?
The Andaria entity you contract with depends on where you are resident and how your account was opened. It is set out in your terms and conditions and on your account statements. Where the protections described on this page differ between our UK and EEA entities, we say so.
Your Confidence Matters
Understanding how your money is protected is important. If you would like to learn more about safeguarding, electronic money, or our services, please explore our Frequently Asked Questions or get in touch with our team through one of the following channels:
- Email us at: clientservices@andaria.com
- Send us a secure message through Internet Banking. Log in here.
- Visit our Frequently Asked Questions below.
FAQ’s Section
What does "safeguarding" mean?
Safeguarding is a legal requirement that helps to protect customer funds held by electronic money institutions and payment service providers.
When you add funds to your account, we safeguard the funds we receive in exchange for the electronic money (e-money) issued to you. This means we take measures to keep customer funds separate from our own business money and safeguarded in accordance with applicable regulatory requirements.
Why do we safeguard customer funds?
We are required by law to safeguard customer funds.
Safeguarding is intended to protect customer funds if a company experiences financial difficulty, but it is different from protection provided by deposit guarantee schemes offered for eligible deposits held with banks.
How we protect your funds?
When you add funds to your account, we issue an equivalent amount of electronic money (e-money) to your account and safeguard the funds received in accordance with applicable regulatory requirements.
🔒 Separate
Your money is kept separate from our own business funds. Your money cannot be used to pay our operating expenses, fund business activities, or be lent to other customers.
🏦 Secure
Your money is held in designated safeguarding accounts with authorised credit institutions in accordance with applicable regulatory requirements.
👀 Monitored
We reconcile our internal records against the balances held in our safeguarding accounts every business day. Our safeguarding arrangements are independently audited each year and reported to our regulators, and we maintain records designed to allow customer entitlements to be identified quickly if we were ever to fail.
⚠️ Safeguarded
Safeguarding is designed to protect customer funds and support their return if we experience financial difficulties or become insolvent.
Electronic money benefits from safeguarding arrangements required by law. Safeguarding is designed to protect customer funds and support their return if we become insolvent, but it is not the same as deposit protection.
These measures are designed to help protect customer funds and reduce safeguarding risks.
Where is my money held?
Your money is held in designated safeguarding accounts with authorised credit institutions and kept separate from Andaria`s own funds in accordance with applicable regulatory requirements.
Can Andaria use my money to fund its business?
No. Your money is safeguarded and kept separate from our own money. They cannot be used to pay company expenses, finance business operations, or meet Andaria`s liabilities.
Is my money invested or lent out?
No. Your money that is safeguarded in designated safeguarding accounts and cannot be used to lend to other customers or used for our own investments or to fund our business activities. In accordance with applicable safeguarding requirements, customer funds may be held with authorised credit institutions and, where permitted, invested in secure, liquid, low-risk assets solely as part of our safeguarding arrangements.
Is Andaria a bank?
No. Andaria is an authorised electronic money institution and payment services provider. We are not a bank and we do not accept deposits.
Is my account a bank account?
No. Your account is an electronic money (e-money) account, not a bank account. When you add money to your account, an equivalent amount of e-money is issued to you.
How is e-money account different from a bank account?
It is important to understand that e-money is not a bank deposit and your account is not a bank account. Electronic money accounts work differently from bank accounts.
As an Electronic Money Institution, we are not a bank and do not accept deposits. Funds held in your account are held as e-money and are therefore not protected by:
- The UK’s Financial Services Compensation Scheme (FSCS);
- Malta’s Depositor Compensation Scheme; or
- Any other national deposit guarantee scheme established under applicable deposit protection legislation, as applicable.
Instead of deposit protection, your funds benefit from the safeguarding requirements that apply to Electronic Money Institutions. While safeguarding is designed to protect customer funds and support their return in the event of insolvency, it does not provide the same protection as a deposit guarantee scheme.
We are also prohibited by law from paying you interest on your e-money balance, or from granting any benefit linked to how long you hold it. This is one of the ways electronic money is legally distinct from a bank deposit.
What is the difference between safeguarding and deposit protection?
Deposit protection schemes are designed to protect eligible bank deposits.
Safeguarding is different. It requires customer funds to be separated from a business’s own funds and protected in accordance with electronic money and payment services regulations.
While safeguarding is designed to help ensure customer funds can be returned if a business fails, it does not provide the same protection as a deposit guarantee scheme.
Is my money protected by the Financial Services Compensation Scheme (FSCS)?
No. Because we are not a bank and do not accept deposits, funds held in your e-money account are not covered by the UK’s Financial Services Compensation Scheme (FSCS) or any other deposit guarantee scheme. Instead, customer funds are safeguarded in accordance with applicable regulatory requirements.
Is my money protected by Malta's Depositor Compensation Scheme?
No. Funds held in your e-money account are not deposits and are therefore not covered by Malta’s Depositor Compensation Scheme or any other deposit guarantee scheme. Instead, customer funds are safeguarded in accordance with applicable regulatory requirements.
What happens if Andaria stops trading or becomes insolvent?
Your funds are held separately from Andaria’s own money in safeguarded accounts. This is intended to protect customer funds from claims made by Andaria’s general creditors if Andaria stops trading or becomes insolvent.
If Andaria decided to stop offering a service, or to close its business in an orderly way while still able to meet its obligations, we would give you advance notice and you would be able to withdraw or redeem your balance in the normal way. Safeguarded funds are held for you throughout, and a solvent wind-down does not involve an insolvency process or a claims procedure
If Andaria were to become insolvent, an insolvency practitioner would manage the return of safeguarded funds to customers in accordance with applicable safeguarding and insolvency requirements.
If Andaria entered an insolvency process, access to your account would very likely be suspended straight away, and you would not be able to spend, transfer or withdraw your balance while the position is established. This is normal and is intended to protect customer funds by preventing some customers being paid ahead of others. The administrator would write to you to explain what happens next.
Keep your contact details with us up to date and keep your account statements. If Andaria ever failed, the administrator would use our records to identify what is owed to each customer and would need to be able to reach you. Accurate contact details and your own records make it easier for your claim to be identified and paid.
Returning safeguarded funds is not immediate. In past failures of payment and e-money firms, customers have waited many months, and in some cases longer, before receiving their money. The rules governing our sector are designed to speed this up, but you should not assume rapid access.
For European customers of Andaria Financial Services Limited, any insolvency proceedings would be conducted under Maltese law and claims for safeguarded funds would normally be made through the relevant insolvency process in Malta.
For UK customers of Andaria Financial Services UK Limited, any insolvency proceedings would generally be conducted under UK insolvency law and claims for safeguarded funds would normally be made through the relevant insolvency process in the United Kingdom.
Safeguarding is designed to protect customer money and improve the likelihood that funds are returned to customers. However, the return of funds may take time and there may be costs associated with administering the insolvency process.
Where and how would I submit a claim?
If Andaria becomes insolvent, you would normally submit a claim for your safeguarded funds through the insolvency process that applies to the Andaria entity where your account is held.
If your account is with Andaria Financial Services Limited, claims relating to safeguarded funds would generally be handled through the relevant insolvency process in Malta, in accordance with instructions issued by the appointed insolvency practitioner, liquidator, administrator, court, or competent authority.
If your account is with Andaria Financial Services UK Limited, claim relating to safeguarded funds would generally be handled through the relevant insolvency process in the United Kingdom, in accordance with instructions issued by the appointed insolvency practitioner, administrator, liquidator, court, or relevant authority.
Should this happen, we or the appointed insolvency practitioner would provide clear instructions on how to make a claim, what information is required and any applicable deadlines.
Can creditors access safeguarded customer funds?
Safeguarding arrangements are designed to keep customer money separate from business’s own money and assets.
In the event of insolvency, safeguarded funds are intended to be returned to customers rather than being made available to satisfy the claims of the business’s general creditors, However, this is subject to applicable law, insolvency procedures and any costs associated with administering the insolvency process.
Your money is held in designated safeguarding accounts with authorised credit institutions and kept separate from Andaria`s own funds in accordance with applicable regulatory requirements.