Spendesk SAS is working with regulated payment services providers (“PSPs”) subject to PSD2 Directive (or equivalent regulation). Consequently, a potential insolvency of Spendesk SAS has no impact on the clients’ funds held by these PSPs.
In accordance with art. 10 of PSD2 Directive, PSPs need to implement measures to protect their clients' funds, which consist in the deposit of the client’s funds on a dedicated bank account opened in the books of a credit institution (called “segregation account”).
➡️ Such account is separated from the PSP’s own funds, controlled by the PSP’s regulator and protected against any bankruptcy of the PSP.
For payment accounts in EUR: the PSP is OKALI (previously SFPMEI), registered as an electronic money institution in France, which T&Cs applicable for the payment accounts are available here (link accessible via https://www.spendesk.com/en/legals/terms/) and state (art. 21: Protection of the Client’s funds): “At the end of every Business Day, the Client’s funds shall be placed in an isolation account opened at a French credit institution and isolated according to article L. 522-17 I. of the French Monetary and Financial Code. The Client’s funds shall be protected against any action from other creditors of the Institution, even in the event of any insolvency or enforcement proceedings against the latter.”
For payment accounts in GBP: the PSP is Transact Payments Limited (TPL) for UK clients / Transact Payments Malta Limited (TPML) for EU clients, registered respectively as electronic money institutions in Gibraltar and Malta, which T&Cs applicable for the payment accounts are available here (link accessible via https://www.spendesk.com/en/legals/terms/) and state (art. 19: Miscellaneous): “The Services are not governed by the Deposit Security Scheme of Gibraltar. However, we will safeguard your funds so that they are protected in accordance with applicable law if we become insolvent”.
How are the funds protected?
Even though the funds are not covered by the Deposit Security Scheme (which is not mandatory), our banking partners (TPL & SFPMEI) are required by law to safeguard our clients' funds within segregated client accounts where funds are not commingled with operational accounts.
Safeguarding comes under the s20 of the Financial Services (Electronic Money) Regulations 2011 (“EMRs”). EMIs are legally required to ensure that client's funds are segregated from the EMI's own funds and protected. It is mainly to protect client funds in cases of insolvency so that client funds can be accounted for and protected against creditors.
The Client’s funds shall be protected against any action from other creditors of the Institution, even in the event of any insolvency or enforcement proceedings against the latter (according to article L. 522-17 I. of the French Monetary and Financial Code).
Our clients' funds are segregated at the following banks:
Crédit Mutuel Arkea for EEA companies with € accounts ;
Starling bank for UK companies with £ accounts ;
Natwest for EEA & UK companies with USD, DKK, NOK & SEK accounts or UK companies with € accounts or EEA companies with £ accounts.
The following articles of the Monetary and Financial Code protect our customers' funds:
Article L. 522-17 : définition des règles de cantonnement des fonds
Article L. 613-30-1 : définition des la protection des fonds sur les comptes de cantonnements
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