Broad is the operator that connects you to Paynetics AD, an electronic money institution authorised by the Financial Conduct Authority under the Temporary Permissions Regime (firm reference number 900785) for the issuance of e-money and provision of payment services in the UK. Details of the Temporary Permissions Regime, which allows EEA-based firms to operate in the UK for a limited period while seeking full authorisation, are available on the Financial Conduct Authority’s website.
To ensure your funds are safe, Paynetics AD follows a process known as “safeguarding”, which is a regulatory requirement for all electronic money institutions. In this process Paynetics AD keeps your funds separate from its own funds and place it in a “safeguarding account” with a bank.
Electronic Money issued is not covered by any Deposit Guarantee Scheme, which is a government backed scheme offering protection to customers' funds of up to €100,000 (£85,000 in the UK under the FSCS) per customer. However, in the event of an insolvency, your funds would remain in the safeguarded account at the designated Bank and separated from Paynetics' accounts.
In the event of Paynetics going out of business, an insolvency practitioner would be appointed to return the funds Paynetics has safeguarded to the customers. This means you would get most of your funds back, except for the costs deducted by the insolvency practitioner for returning the funds to the customers.