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Yomo Community / General

How we keep your funds safe

How we keep your funds safe

Yomo Community / General · August 16, 2018 at 2:40pm
We are working to make sure all deposits are covered by the Gibraltar equivalent of FSCS (the GICS). We expect to have that confirmed and in place shortly, and will update all our wait list users ahead of launch.
Our prime broker partner is fully authorised and regulated, and they hold 100% of user balances in cash and other liquid assets. This means that whenever you want to withdraw your funds, they are always there waiting for you.
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August 16, 2018 at 9:48pm

Will there be an upper limit to how much money you can guarantee the safety of?

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August 17, 2018 at 10:36am

Will there be an upper limit to how much money you can guarantee the safety of?

This is a really important question and something we are working very hard on. We know that we must be able to provide absolute clarity on this aspect of fund safety prior to launch.

Confirming the specific compensation scheme details isn’t as easy as usual because of the way our products are structured with our prime broker partner. However, for now, we know there will be three things in place to guarantee fund safety:

1. Compensation scheme - there will be an upper limit to the compensation scheme. In the UK it is £85,000 and in Gibraltar it will either be £20,000 or €100,000, depending on the scheme. We will confirm what scheme, and the limits, once we finalise it.

2. Partner requirements - the regulated entity holding your funds must confirm that they hold 100% of all customer funds in liquid assets (for example, cash) at the end of every day.

3. Separate insurance - we are looking into offering additional insurance on the funds beyond the covered amount (though we don't expect to offer that until 2019).

So, the short answer is that an unlimited amount of funds are covered by number 2 (the regulated entity confirming funds are available in full), at worst up to £20,000 is covered by number 1 (the Gibraltar compensation scheme), and hopefully in future we'll have number 3 (an unlimited insurance product on top).

As soon as we have final details on the compensation scheme, we will share it here.

Thanks

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