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lyndalelodge

Financial Services Compensation Scheme

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This may a silly question, but if I were transferring £200,000 via moneycorp, would I be at risk via the FSCS, in that if Moneycorp happened to go bust at the time of transfer would they go down with my cash in their pockets?

 

Are moneycorp covered by the UK's £50,000 per person limit (or some other limit?) and should transfers be limited to avoid this type of risk?

 

Similarly, are you aware what the situation is with regard to Australian banks and how much they are covered for? Should funds be split amongst institutions to reduce risk?

 

I'm a worrier!!!

 

Thanks for any advice

 

Mike

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This may a silly question, but if I were transferring £200,000 via moneycorp, would I be at risk via the FSCS, in that if Moneycorp happened to go bust at the time of transfer would they go down with my cash in their pockets?

 

Are moneycorp covered by the UK's £50,000 per person limit (or some other limit?) and should transfers be limited to avoid this type of risk?

 

Similarly, are you aware what the situation is with regard to Australian banks and how much they are covered for? Should funds be split amongst institutions to reduce risk?

 

I'm a worrier!!!

 

Thanks for any advice

 

Mike

 

Hi Mike,

 

Australian banks operate under the government's bank deposit guarantee which covers you up to $1 million. There hasn't been an occasion when savers lost their money in Australia since 1931 so I don't think there is anything to worry about.

 

I don't think (could be wrong) that funds are guaranteed during the transfer process. Although the one I have always used, Oz Forex, and I expect the others are the same, carry no exposure to the financial environment as they don't pay out the transfer until the funds are paid in by the client. What you might look to check is just who owns the FOREX company as they are generally a marketing portal for a bank. For instance, Oz Forex is now 100% owned by Macquarie, which is relatively stable...

 

The problem of transferring little by little is that you would get a weaker rate than on a bigger sum. Any, I hope this helps ease your anxieties a little....

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This may a silly question, but if I were transferring £200,000 via moneycorp, would I be at risk via the FSCS, in that if Moneycorp happened to go bust at the time of transfer would they go down with my cash in their pockets?

 

Are moneycorp covered by the UK's £50,000 per person limit (or some other limit?) and should transfers be limited to avoid this type of risk?

 

Similarly, are you aware what the situation is with regard to Australian banks and how much they are covered for? Should funds be split amongst institutions to reduce risk?

 

I'm a worrier!!!

 

Thanks for any advice

 

Mike

 

Hi Mike

 

It’s not a silly question – but the answer is quite complicated, so I’ll try to keep things as simple as possible.

 

Firstly, no we are not covered by the FSCE. But this doesn’t mean that your money isn’t safe. As an authorised Payments Institution, Moneycorp is legally required to safeguard client funds in respect of a payment (after the exchange of currency has taken place). We are a licensed Money Service Business and are also authorised and regulated by the Financial Services Authority for the conduct of designated investment business and the provision of payments services.

 

In the highly unlikely event that Moneycorp was to go out of business, your £200,000 worth of currency would be well protected. For one thing, we are very well capitalised and, in most cases, are not exposed to major credit risk anyway – as we do not hold money on account for most of our clients.

 

If you want to check the facts and figures, please do take a look at our latest annual report and accounts, available at: http://www.moneycorp.com/About-us/Annual-report/. (Our accounts have actually been audited by PricewaterhouseCoopers every year since 1987.) If, for some reason, your hypothetical £200,000 had not been exchanged for foreign currency and we ‘went bust’, there would still be little cause for concern – because we also have special agreements in place with banks like HSBC, which should safeguard your money.

 

It might also reassure you to know that Moneycorp has been in business for more than 30 years and has maintained ISO 9000 Quality Assurance certification since 1996. This is a unique achievement in the foreign exchange industry and it means all of our systems and processes meet special standards. On top of all this, we have excellent ratings from Dun & Bradstreet, Graydon and other credit agencies.

 

Kind regards

John

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