How Moneyfarm keeps your investments secure

As a wealth manager, the security of our customers’ investments is one of our primary responsibilities. When people invest, they want to know that their money is not just well-placed to grow, but safe from issues like insolvency or fraud. 

So, naturally, the security of our 60,000 clients is something we take incredibly seriously. From two-factor authentication to the systems we use on a day-to-day basis, Moneyfarm customers know that their wealth is safe with us. 

The video above explains the three core pillars of Moneyfarm’s security structure. These are: 

We’re FCA authorised

Firstly, Moneyfarm is authorised and regulated by the Financial Conduct Authority (FCA). Designed to protect clients in the financial industry, the FCA comes with its own set of rules that we, as a business, have to comply with. 

This includes safeguarding client assets away from our own, full verification of client bank accounts and daily reconciliations to ensure that the total value of cash and investments held by us matches those of the total value of our clients, to name a few. 

To ensure that we meet all of these criteria, we have an internal governance process and an independent audit that is conducted annually by a specialist firm – with the results sent to the FCA for them to check. 

We employ a custodian bank

Another important layer of security is our appointed custodian bank. This, in short, ensures that client funds are adequately safeguarded in terms of ownership rights in the event of our insolvency, all while minimising the chance of loss or diminution of those assets.

So, using carefully selected, fully regulated financial institutions like Barclays and Saxo Capital Markets, we ensure that our clients’ assets are never mixed with ours, or theirs. Our custodian, Saxo Capital Market, is responsible for over £68 billion in client assets, on behalf of over 790,000 clients worldwide. They offer all the experience and the know-how to make sure your wealth is in safe hands.

You’re protected by the FSCS

The final pillar is a last resort. For further safeguarding on top of all the steps we take, the Financial Services Compensation Scheme is there to protect clients in the extremely unlikely event of the firm failing. 

Because we adhere to the CASS rules set out by the FCA, your funds are kept apart from our own and protected at Saxo Capital Markets UK Ltd as previously mentioned. This means that, even in the event that we did go bust, all of your funds should still be safe. In these situations, your money and investments may be eligible for protection under the scheme to the tune of £85,000. 

It’s important to remember that investing can itself lead to losses in value as well as gains. The FSCS scheme can’t help with that and it’s not designed to. Negative market performance wouldn’t be covered by the FSCS. 

We hope that this gives you an idea of just how protected you are as a Moneyfarm customer. You’ll always get the very best in financial innovation and investment consultancy, backed by top-tier security measures for extra peace of mind.