How Your Funds Are Safeguarded
WTSG Pte Ltd and WTUK Limited, trading as Clearing, operate in Singapore as a Major Payment Institution (MPI) regulated by the Monetary Authority of Singapore (MAS) and as an Electronic Money Institution (EMI) in the United Kingdom, regulated by the Financial Conduct Authority (FCA). These licenses ensure that we operate under strict financial regulations designed to protect customer funds.
Unlike traditional banks, we do not use customer funds for lending or investment purposes. The sole purpose of these funds is to facilitate electronic transactions, ensuring that they are always available when you need them.
Singapore
In Singapore, we comply with MAS regulations under the Payment Services Act (PSA), ensuring that customer funds are kept separate from our operational funds through safeguarding accounts with reputable financial institutions. All customer funds are held in trust accounts with regulated safeguarding institutions, separate from our company’s own funds. This guarantees that your money remains protected and cannot be used to cover any debts or obligations of WTSG.
Before opening a trust account, we conduct a thorough assessment of the safeguarding institution’s suitability. We also provide written notice to the institution and obtain confirmation that all funds are held in trust and cannot be used for any purpose other than safeguarding customer funds.
Your funds are safely segregated from the company’s trading funds and safeguarded in accordance with the Payment Services Act (PSA). In the unlikely event that the Major Payment Institution goes out of business, safeguarded funds will be protected and returned to you. However, certain administrative costs may be deducted as part of the recovery process, subject to applicable regulations.
We maintain strict compliance by conducting annual reviews of safeguarding institutions and keeping detailed records for at least five years. We do not withdraw safeguarded funds except under specific conditions, such as reimbursing WTSG for funds advanced to maintain the trust account or making payments to customers.
If you have any questions, our team is happy to assist you. You can also visit MAS website to learn more about how safeguarding differs from traditional banking protections.
UK
In the UK, we comply with the FCA’s Electronic Money Regulations, which require us to keep customer funds separate from company funds in dedicated safeguarding accounts.
Customer funds are held in safeguarding accounts at well-established and regulated financial institutions, ensuring they are protected from any financial instability or insolvency risks associated with our business operations. As your funds are safeguarded, FSCS protection does not apply as it would with a traditional bank.
Your funds are safely segregated from the company’s trading funds, meaning that no third-party obligations can be covered from your funds in the unlikely event that the E-Money institution goes out of business. Should this situation arise, a small amount of your account balance may be deducted to cover the administrator’s costs in retrieving your money.
If you have any questions, our team is happy to assist you. You can also visit the FCA’s website to learn more about the differences between banks and E-Money firms.