Wednesday November 19,2014 : UK GAMBLING COMMISSION SET FUND PROTECTION RATINGS
Empowers the consumer to choose according to level of fund protection
The UK Gambling Commission has published an information category on how consumers can identify licenced operators' self-assessed "Levels of Protection" in relation to customer funds.
Operators licenced by the Gambling Commission have until December 31, 2014 to assess themselves against three categories of protection for customer funds: basic, medium and high.
The three categories comprise:
– Basic: Segregation of customer funds. Customer funds are kept in accounts separate from business accounts but they would form part of the assets of the business in the event of insolvency. These accounts may include bank accounts, investment accounts and other accounts.
– Medium: Quistclose or equivalent. Customer funds are kept in accounts separate from business accounts; and arrangements have been made to ensure assets in the customer accounts are distributed to customers in the event of insolvency. The arrangements falling in the medium category include Quistclose accounts and insurance arrangements.
– High: Independent Trust Account. Customer funds are held in a trust account which is verified and subject to controls by an independent trustee.
Licenced operators, both remote and non-remote, are required to clearly convey their Level of Protection Rating to customers as part of their terms and conditions.