Safeguarding of customer funds
Certain funds that Caxton holds for its clients are not covered by the Financial Services Compensation Scheme, which applies to bank deposits or investments.
Given this, the FCA requires Financial services providers such as Caxton to ensure that the protection of consumers funds is a key element to business operations by ensuring client funds are safe.
Caxton's obligation to segregate client's funds is one that exists to afford its customers protection in the unlikely event that Caxton may become insolvent.
As Caxton is an authorised Electronic Money Institution regulated by the Financial Conduct Authority (FRN 900663), it is therefore subject to the strict Safeguarding obligations and requirements under the Payment Service Regulations 2017.
The requirement for segregation only applies to payment services and card activities conducted by Caxton and for which a requirement to safeguard exists under applicable rules. As a result, Caxton's obligations to segregate will relate to its International Payment and Card activities (where the funds are within the definition of relevant funds).
Caxton has chosen to safeguard funds by segregation method using client segregation accounts held with an authorised credit institution. These accounts will be properly labelled as per the FCA requirements to ensure they can be identified and are separate to Caxton's own funds.