PAYMENTS SAFEGUARDING
Safeguarding is not a synonym for deposit protection.
The institution, customer, activity, funds, method, evidence date and limitations must remain visible. Different concepts answer different questions.
A SAFEGUARDING REQUIREMENT OR METHOD DOES NOT GUARANTEE THE AVAILABILITY, SPEED OR AMOUNT OF FUTURE RECOVERY.
Read each statement against its scope.
A useful statement identifies the entity, customer and service scope, names the evidence character and states what cannot be concluded.
Safeguarding is a maintained cycle.
01
Relevant funds
- Question
- Which defined funds and activities are within the safeguarding question.
- Evidence character
- Policies, transaction records and scope analysis.
- Limitation
- Every balance is relevant or treated identically.
02
Segregation
- Question
- How defined funds are kept apart from the institution’s own funds.
- Evidence character
- Account structure, designation, calculations and dated operational evidence.
- Limitation
- Separation alone guarantees access or recovery.
03
Safeguarding institution
- Question
- Which third party holds funds or supports the arrangement.
- Evidence character
- Exact institution, dependency, evidence date and confidential boundary.
- Limitation
- The institution owes each customer a protected deposit.
04
Reconciliation
- Question
- Whether records and safeguarded resources are compared through a current process.
- Evidence character
- Frequency, data sources, calculation, exceptions and review date.
- Limitation
- A historic sample proves the current position.
05
Return-of-funds process
- Question
- How customers may be identified, informed and included in an intended return process.
- Evidence character
- Reconciliation, authority, communications and outcome records.
- Limitation
- Return will be immediate, complete or guaranteed.
06
Deposit protection
- Question
- Whether a separate statutory scheme may apply to an exact eligible deposit.
- Evidence character
- Scheme, institution, holder, product, eligibility and date.
- Limitation
- Safeguarding and deposit protection are synonyms.