This page was last updated on 25 March, 2023
Financial Institution Comparison
Safeguarding is used by financial institutions to protect funds it holds on behalf of customers in the event that the financial institution were to go into liquidation.
It ensures that customer funds can only be used to:
Types of safeguarding include:
Ring-fencing (or segregating) of funds is a form of safeguarding used by financial institutions where customer deposits are held in separate bank accounts to that of the financial institution’s operating funds. This ensures that in the event of the financial institution becoming insolvent or going bankrupt, the funds cannot be accessed by any third party (e.g. liquidators) to pay down the financial institution’s debts.