SUP 3A.1 Application

1. (1) Subject to (3) and (4), this chapter applies to: 

2.      (a) relevant institutions, which means the following, unless they are exempt in accordance with (2): 

3.           (i) authorised payment institutions that are authorised to carry out payment services other than payment initiation services or account information services; and

4.           (ii) electronic money institutions; and

5.       (b) the external auditors of relevant institutions appointed in accordance with SUP 3A.3.

6. (2) An institution is exempt if it has not been required to safeguard more than £100,000 of relevant funds under the relevant funds regime at any time for a period of at least 53 weeks.

7. (3) SUP 3A.1.3G and SUP 3A.1.4G apply to safeguarding institutions that are not relevant institutions.

8. (4) SUP 3A.8.10G applies to statutory auditors of safeguarding institutions (as defined in regulation 25(6) of the Electronic Money Regulations and regulation 24(6) of the Payment Services Regulations).

This chapter applies to relevant institutions whether they safeguard relevant funds through the segregation method, the insurance or guarantee method or both.

Safeguarding institutions that are not subject to this chapter are still required to have in place adequate arrangements to safeguard relevant funds under CASS 15.2.1R and minimise the risk of their loss or diminution under regulation 24(3) of the Electronic Money Regulations and regulation 23(17) of the Payment Services Regulations. Voluntarily arranging an audit in accordance with this chapter may help ensure they meet these obligations. 

It is the responsibility of a safeguarding institution's senior management to determine, on a continuing basis, whether the safeguarding institution is exempt in accordance with SUP 3A.1.1R(2) and to appoint an auditor if management determines the institution is no longer exempt.