APIs and EMIs must comply with the safeguarding requirements
If your firm is an authorised payment institution (API) or an e-money institution (EMI) managing client funds, you are legally required to comply with safeguarding obligations under PSD2. The most widely used method is the segregation method, which involves holding client funds in a dedicated safeguarding account with a specialist bank.
Securing such an account, however, is often a challenge—especially for firms that are not yet authorised. Through our strong relationships across the banking sector, API Compliance can introduce you to reputable banks that understand your needs and are willing to work with regulated firms.
What client funds do I need to safeguard?
According to the Financial Conduct Authority (FCA), firms must safeguard relevant funds, which include:
Who needs a safeguarding bank account?
While small payment institutions (SPIs) have the option to opt out of safeguarding requirements, the FCA strongly recommends compliance. For authorised payment institutions (APIs), authorised e-money institutions (AEMIs), and small e-money institutions (SEMIs), safeguarding is mandatory.
Who needs a safeguarding bank account?
Each bank has its own criteria for offering safeguarding accounts. These may include requirements such as:
Startups and newly authorised firms may find it particularly difficult to meet these conditions without guidance.
How long does it take to open a safeguarding bank account?
With our support, the process typically takes just a few weeks. Rather than applying blindly to multiple banks, let us guide you to the institutions that are most likely to approve your application—saving you time and effort.
What makes us different?
Navigating the safeguarding account process can be frustrating and time-consuming. Thanks to our well-established banking network and industry expertise, we can connect you with the right banking partners quickly and effectively, giving your business the best possible start in meeting its regulatory obligations.
