> For the complete documentation index, see [llms.txt](https://legal.incard.co/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://legal.incard.co/licenses/safeguarding.md).

# Safeguarding

### Safeguarding your funds

Incard is an electronic money institution, not a bank. We safeguard relevant funds using segregation. This means we keep them separate from Incard's own money. We hold safeguarded funds in accounts with authorised credit institutions.

We do not use safeguarded funds for operating expenses, lending, or investments. The funds remain available solely to meet obligations to you and other electronic money holders.

If Incard becomes insolvent, safeguarded funds form a separate asset pool, protected from Incard's general creditors. Under the Payment and Electronic Money Institution Insolvency Regulations 2021, an insolvency practitioner distributes this pool to electronic money holders in accordance with the applicable insolvency process. Distribution may take time, and the amount returned depends on the value of the asset pool at that time.

We safeguard your funds from the moment we receive them until they're paid out to you, or used to make a payment on your instruction.

### Financial Services Compensation Scheme

Funds held in your Incard account are **not** protected by the Financial Services Compensation Scheme (FSCS).

Safeguarding differs from FSCS protection. It is designed to keep relevant funds separate from Incard's assets. This helps ensure those funds are returned to customers if Incard fails.

### Regulation

Incard Ltd is authorised by the Financial Conduct Authority as an Electronic Money Institution. It can issue electronic money and provide payment services in the United Kingdom. See [License - UK](/licenses/license-uk.md).