No, ApprovalMax Pay Wallets are not covered by the Financial Services Compensation Scheme (FSCS). While FSCS does not apply, your funds are still rigorously protected under Financial Conduct Authority (FCA) rules through Safeguarding.
Safeguarding is a regulatory process designed to ensure your money remains safe even in the unlikely event of insolvency
Here’s how it works:
When you add funds to your Wallet, e-money is issued in exchange. The "real money" behind that balance is held in a reputable bank account, strictly separated from the operational funds of both ApprovalMax and Currencycloud.
Because these funds are segregated, they are legally protected from other creditors. If ApprovalMax or Currencycloud were to become insolvent, your money would remain identifiable and could be returned to you.
Why aren't Wallets covered by FSCS?
The FSCS typically protects deposits held with licensed banks, building societies, and credit unions.
ApprovalMax Pay Wallets are provided through an authorised Electronic Money Institution (EMI), specifically our partner, Currencycloud, rather than a traditional bank. Under UK financial regulations, EMI accounts are not classified as bank deposits, which means FSCS protection does not apply.