The Sibstar account and card is issued by AF Payments Limited (AF), an authorised Electronic Money Institution (EMI) regulated by the FCA. AF Ltd is not a bank.
The difference between an EMI and a bank is the following:
- An EMI cannot take your money as a deposit to use for its own purposes or use it to lend to other customers
- An EMI has to safeguard all of your funds regardless of the amount.
- As an EMI is not a bank, it means that it is not part of the UK’s Financial Services Compensation Scheme (FSCS).
As an EMI, AF is required to protect your money. When money is placed in your account (card or e-money account), the money held on your account with us is protected through a process called ‘Safeguarding’.
This means that AF keeps your money separate from its own money, and it is held in a designated safeguarding account with a bank. Your money cannot be used by AF for its own purposes, and it cannot be lent to other customers.
If AF were to go out of business, an insolvency practitioner would be appointed to return your safeguarded funds back to you. This means that you would be able to receive your money back if such an event were to occur. Please note that if this were ever to happen, the insolvency practitioner may deduct costs in respect of returning the safeguarded funds to you.
Further information about Safeguarding can be found on the FCA’s website.
Should you have any questions about how your funds are secured, please feel free to contact us by email at hello@sibstar.co.uk.