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The financial products you need to run your business
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“Opening our account was incredibly easy. Everything was handled smoothly on the call, with no forms to deal with.”
Mounir Mouawad
How we keep your money safe
How are your funds protected & safeguarded?
Seapoint partners with Modulr, a regulated Electronic Money Institution, to provide secure payment services.
For UK customers:
Modulr is required by law to use a process called Safeguarding to protect customer money. This means they ensure that the funds they receive in exchange for e-money are segregated from all other funds that they hold and cannot be used for any other purposes. These safeguarded funds must be held in specially designated client accounts at credit institutions (banks), the Bank of England or invested in secure, liquid assets that the FCA has approved for such purposes. Furthermore, as an EMI, Modulr must also hold an additional amount equal to 2% of the total value of safeguarded client funds in their own funds, which are held separately to client funds.
For EEA customers:
Modulr is required by law to use a process called Safeguarding to protect customer money. This means they ensure that the funds they receive in exchange for e-money are segregated from all other funds that they hold and cannot be used for any other purposes. The funds they safeguard are therefore completely separate from the additional funds that Modulr holds to meet its corporate obligations and run its business. These safeguarded funds are held at credit institutions (banks) in specially designated accounts belonging to Stichting Custodian Modulr Finance, an entity whose sole purpose is to ensure the safeguarding of funds for Modulr customers. Furthermore, as an EMI, Modulr must also hold an additional amount equal to 2% of the total value of safeguarded client funds in their own funds, which are held separately to those client funds.
How are your financial partners regulated?
In the UK:
Modulr FS Ltd (FRN: 900573) is licensed as an authorised E-Money Institution (EMI) and regulated by the Financial Conduct Authority (FCA). Modulr Finance Limited (FRN: 900699) is registered with the Financial Conduct Authority as an EMD Agent of Modulr FS Limited.
In the EEA:
Modulr Finance B.V. is licensed and regulated by De Nederlandsche Bank (Relatienummer R182870) as an Electronic Money Institution.Being regulated as an Electronic Money Institution means Modulr has to follow strict rules. These include keeping your money separate (safeguarded), regular audits, and strong controls to make sure your funds are always protected.
Is your partner, Modulr, a bank?
Modulr is not a bank, they're an Electronic Money Institution (EMI). An EMI is an organisation that has been authorised by the regulator to issue e-money accounts and provide payment services.
One of the main differences between Modulr, an EMI, and a bank is that banks lend money, whereas EMIs are prohibited from lending money. Specifically, banks receive deposits from customers that they use to lend money out and make a profit on the difference. By contrast, an EMI such as Modulr does not lend any customer funds or offer interest on balances.
What does it mean that my money is "safeguarded"?
Your money is kept completely separate from Modulr's own company money. They don't use it to run their business, make loans, or invest. The funds Modulr safeguard are completely separate from the additional funds that Modulr holds to meet its corporate obligations and run its business.
This means that if anything ever happened to Modulr, your money would still be there - it's protected by law. The purpose of the 2% additional funds that Modulr must hold is to ensure that, in the case of any problems with their business, there are enough funds to support an orderly business wind-down and the process of returning of client funds.
How do you protect me from fraud or scams?
Seapoint monitors transactions around the clock to spot anything unusual. If we see something suspicious, we may pause the transaction and contact you. If you ever think your account's been compromised, you can reach our support team right away.
Is my money covered by FSCS (UK) or DGS (EEA)?
For UK customers:
The FSCS is the Financial Services Compensation Scheme, which provides consumers protection of their bank deposits up to a maximum of £85,000, or £170,000 for a joint account, in the event of a bank failure. The FSCS scheme only applies to certain institutions and does not include EMIs such as Modulr.
However, Modulr's safeguarding requirements mean that all customer money held at Modulr, regardless of the amount, is segregated from all other funds that they hold and cannot be used for any other purpose. So, while the FSCS is not applicable to e-money, the regulatory requirements are designed to protect the balance of customer funds, as opposed to only compensating up to a maximum limit, as is the case with the FSCS.
For EEA customers:
The DGS is the Deposit Guarantee Scheme, which protects money in Dutch bank accounts up to a maximum of €100,000 per person, per bank. The DGS is not applicable to EMIs such as Modulr.
However, Modulr's safeguarding requirements mean that all customer money held at Modulr, regardless of the amount, is segregated from all other funds that they hold and cannot be used for any other purpose. So, while the DGS is not applicable to e-money, the regulatory requirements are designed to protect the balance of customer funds, as opposed to only compensating up to a maximum limit, as is the case with the DGS.
What would happen in the event of Seapoint or a partner's insolvency?
In addition to their safeguarding obligations and the requirement to maintain an additional 2% of corporate funds as regulatory capital, Modulr is also required to prepare orderly wind-down plans. These plans are a regulatory requirement and include the early identification of a potential insolvency event and the return of your funds before an insolvency process commences, if possible.
In the event that Modulr becomes insolvent, your funds are separate from the funds of Modulr and therefore the creditors of Modulr (other third parties that are owed money from Modulr) are not able to make a claim against safeguarded funds and would not affect your entitlement to your funds. An independent insolvency professional (referred to as an 'insolvency practitioner') would be appointed to return your funds to you. However, where an insolvency practitioner is unable to take their costs of sending the funds to you from elsewhere (for example, the general pot of Modulr funds remaining or from the additional 2% own funds described above) they are entitled to take their costs from safeguarded funds which would include your funds. In this unlikely circumstance, you may not receive the total value of your funds.
