Long story, short, and legalese aside, Cashplus is not a bank. We’ve just found another way to provide a full suite of current account services to customers across the UK.
But, that’s something we’re pretty proud of. With a Cashplus Account you get almost all the features of a High Street Bank Account, as well as some unique extras – and we’ve been able to do all that ourselves, without many of the advantages and access that comes with being a bank.
It’s meant getting pretty innovative at times and coming up with some unique solutions to provide our customers with the services they need, but we’ve done it!
You won’t find us using terms like ‘overdraft’ or ‘deposits’ because those are product names that generally only banks or building societies can use, but we’ve come up with our own alternatives that we think work just as well, if not better.
In regulatory terms, Cashplus (the trading name of Advanced Payment Solutions Limited, (APS)), via our wholly owned subsidiary, APS Financial Ltd (AFL), is an e-money issuer – authorised and regulated by the Financial Conduct Authority, with FRN 900002.
APS is authorised and regulated by the FCA to provide the credit facilities that may be added onto Cashplus Accounts (like our iDraft product). The FRN of APS is 671140.
Any funds you load into a Cashplus Account are completely safeguarded.
While a bank may use the funds you hold with them for lending or investing, we don’t touch them unless instructed by you.
In accordance with the Electronic Money Regulations, we keep them in a regulated bank account at all times, completely separate from any of our company money.
That means your money is never used or accessed by us, except to make it available to you, and, in the unlikely event of AFL becoming insolvent, your funds are protected from other creditors’ claims and can be repaid to you.
As we’re not a bank, we’re not members of the Financial Services Compensation Scheme (FSCS).
However, the funds on your account are safeguarded and held in a segregated account with The Royal Bank Of Scotland (RBS). That means that in the unlikely event of AFL becoming insolvent, your funds are required to be repaid from this segregated account before the claims of other creditors.
Safeguarded funds are subject to e-money regulations set out by the FCA and an e-money issuer can’t use those funds. Protective measures are set up so in the event an e-money issuer hits a certain financial threshold which suggests they could fail, they must let the FCA know. If it’s deemed that the e-money issuer is likely to fail, they must work out a plan to return the safeguarded funds to their customers. And because the funds are safeguarded and can’t be used by the e-money issuer, customers’ money is safe and secure.
You can find out more about the rules around safeguarding for e-money issuers on the FCA’s website: https://www.fca.org.uk/firms/emi-payment-institutions-safeguarding-requirements
Whereas the Financial Services Compensation Scheme (FSCS) protect accounts by compensating customers up to £85,000 if financial firms like banks fail. You can find out more about the FSCS on its website at fscs.org.uk.
Terms and Conditions apply, including applicants being resident in the UK & aged 18+ and, if relevant, businesses being based in the UK. For full website terms including information on Cashplus, Mastercard and use of Trademarks, please see our full legal disclosures at https://www.cashplus.com/legal/. **Credit facilities are provided by Advanced Payment Solutions Ltd (APS) and are subject to the AFL Cashplus e-money account being in good standing and applicants aged 18+. APS is authorised and regulated by the Financial Conduct Authority for consumer credit activities (Registration No. 671140). ♦Calls to 03 numbers cost no more than a national rate call to a 01 or 02 number and will count towards inclusive minutes in the same way as 01 and 02 calls. Calls may be recorded.