For our UK customers sending money with Wise or holding money in the Wise account, in keeping with Wise’s regulatory obligations, we “safeguard” our customers’ funds in a mix of cash in leading commercial banks and investments in secure liquid assets, primarily government bonds. We also keep your money separate from the money we use to run our business.
Here’s an overview of where we predominantly safeguard:
| Type | Institution |
|---|---|
| Cash Deposit | BARCLAYS BANK PLC |
| Cash Deposit | CITIBANK N.A. |
| Cash Deposit | JPMORGAN CHASE BANK, N.A |
| Secure Liquid Assets | Including EU, US and UK Governments bonds |
We hold funds in cash with the banks as well as in secure liquid assets such as UK and US Government bonds in order to diversify risk and maximise liquidity. We take this approach to make sure your money is highly liquid and therefore always available to you.
The average duration of government bonds is currently under 6 months with the majority of bonds having a remaining term of 3 months or less. Only 2% of the portfolio has a term of greater than 3 years. We actively manage the fair value risk in relation to these and any impact is already reflected in our financial position.
We aren't a bank, which means we don't lend out our customers’ money to people or businesses. This also means our e-money and payment services aren't subject to the Financial Services Compensation Scheme (FSCS).
We do however offer our Assets feature, which is an investment service. Money invested in Assets is held in segregated accounts, separate from Wise’s own funds. In addition to this protection, each customer is also eligible for protection under the FSCS up to a value of 85,000 GBP in the UK.
Learn more about how your money is held when you use Assets
Who regulates Wise?
In the UK, Wise Payments Limited is an authorised Electronic Money (e-money) Institution under the Electronic Money Regulations 2011 with permission to issue electronic money and provide payment services. TINV Ltd is regulated under the Financial Services and Markets Act 2000 for the provision of investment services.
We follow a strict set of rules set by our regulators in each country in which we operate, such as the Financial Conduct Authority (FCA) in the UK, the National Bank of Belgium (NBB) in Europe and 48 state regulators in the USA. These regulators protect the markets in which we operate.