Safeguarding Policy Statement

Our Commitment to Protecting Your Funds

At Unicorn Currencies, safeguarding client funds is our highest priority. We operate under strict regulatory frameworks designed to ensure your money is protected at all times. This statement explains how we safeguard your funds and what protections are in place.

How We Safeguard Client Funds

For Canadian Clients (Unicorn Currencies Limited)

Segregated Trust Accounts

All client funds received by Unicorn Currencies Limited (Canada) are held in segregated trust accounts at Tier-1 Canadian chartered banks. These accounts are:

(a) Separate from Corporate Operating Funds: Your money is never mixed with Unicorn's operational funds, ensuring complete separation and protection.

(b) Designated as Trust Assets: Accounts are clearly identified as trust accounts holding client money, providing legal protection under Canadian trust law.

(c) Reconciled Daily: We perform daily reconciliations to ensure client fund balances are accurate and fully accounted for.

(d) Not Used for Business Operations: Client funds cannot be used to pay Unicorn's business expenses, creditors, or operational costs.

Regulatory Oversight

Unicorn Currencies Limited is registered with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) as a Money Service Business (MSB) and Payment Service Provider (PSP) under registration number C100000159. We comply with all FINTRAC requirements regarding safeguarding of client funds.

For UK, EU, and Rest of World Clients (Unicorn Currencies Ltd)

Safeguarding Through FCA-Authorized Partners

Unicorn Currencies Ltd (UK) operates as a Program Manager and intermediary. Client funds for UK, EU, and Rest of World clients are safeguarded by our FCA-authorized Payment Service Provider partners in accordance with:

(a) Electronic Money Regulations 2011 (UK)

(b) Payment Services Regulations 2017 (UK)

(c) Financial Conduct Authority (FCA) Handbook safeguarding requirements

How Partner Safeguarding Works

(a) Segregated Safeguarding Accounts: Our FCA-authorized partners hold client funds in segregated accounts at major UK and European banks, separate from their own corporate funds.

(b) Regulatory Compliance: Our partners are required by FCA regulations to safeguard 100% of client funds and maintain adequate systems and controls to protect client money.

(c) Independent Oversight: Partner safeguarding arrangements are subject to FCA supervision and independent audit.

(d) Daily Reconciliation: Partners perform daily reconciliations to ensure client funds are fully protected and accounted for.

Important Limitations

No Deposit Insurance Coverage

Client funds held by Unicorn Currencies or our authorized partners are NOT covered by government deposit insurance schemes:

(a) Canada Deposit Insurance Corporation (CDIC) does not cover funds held by Money Service Businesses.

(b) Financial Services Compensation Scheme (FSCS) does not cover e-money or payment service balances.

Client funds are held as payment service balances or e-money, not as bank deposits. While safeguarding protections are in place, they differ from traditional deposit insurance.

Nature of Protection

Safeguarding is designed to protect client funds in the event of insolvency but:

(a) There may be delays in returning funds during an insolvency process.

(b) Recovery is not guaranteed to be 100% in all circumstances, though safeguarding regulations are designed to maximize client fund protection.

(c) Funds are subject to proper reconciliation and claims processes in the event of insolvency.

Protection in the Event of Insolvency

Canadian Entity Insolvency

In the unlikely event that Unicorn Currencies Limited (Canada) becomes insolvent:

(a) Client Funds Are Protected: Funds held in segregated trust accounts are not assets of Unicorn and are not available to satisfy Unicorn's creditors.

(b) Priority Return: Client funds are held in trust for your benefit and must be returned to clients as a priority, ahead of other creditors.

(c) Trustee Administration: A licensed insolvency trustee would administer the return of client funds in accordance with Canadian insolvency law and trust principles.

(d) Legal Ring-Fencing: Trust law provides strong legal protections ensuring client money remains separate and identifiable.

UK Entity / Partner Insolvency

In the event of insolvency of Unicorn Currencies Ltd (UK) or an FCA-authorized partner:

(a) Safeguarded Funds Are Protected: Client funds held in safeguarding accounts by FCA-authorized partners are segregated and not available to satisfy creditors of the insolvent entity.

(b) FCA Safeguarding Rules: Regulatory safeguarding rules under the Payment Services Regulations 2017 and Electronic Money Regulations 2011 provide statutory protection for client funds.

(c) Administrator / Trustee Management: In an insolvency scenario, an administrator or trustee would manage the return of safeguarded funds to clients in accordance with FCA requirements and UK insolvency law.

(d) Priority Status: Safeguarded client funds have priority over general creditors' claims.

Important Note: If an FCA-authorized partner becomes insolvent, Unicorn Currencies Ltd (UK) will work with regulators and insolvency practitioners to facilitate the return of client funds and, where necessary, transition clients to alternative authorized partners.

Ongoing Monitoring and Compliance

We maintain robust systems and controls to protect client funds:

(a) Daily Reconciliations: Client fund balances are reconciled daily against bank statements and transaction records.

(b) Independent Audits: Our safeguarding arrangements are subject to annual independent audit by qualified external auditors.

(c) Regulatory Reporting: We submit regular reports to FINTRAC (Canada) and maintain compliance with FCA partner requirements (UK).

(d) Senior Management Oversight: Our Chief Operating Officer and Head of Compliance oversee safeguarding compliance and report to the Board of Directors.

(e) Staff Training: All personnel handling client funds receive mandatory training on safeguarding requirements and procedures.

Transparency and Accountability

We are committed to transparency regarding safeguarding:

(a) Client Fund Reporting: Upon request, we can provide confirmation that your funds are held in accordance with this Safeguarding Policy.

(b) Regulatory Status: Our regulatory registrations and authorizations are publicly verifiable with FINTRAC (Canada) and through our FCA-authorized partners.

(c) Questions and Concerns: If you have questions about how your funds are safeguarded, please contact our Compliance team at compliance@unicorncurrencies.com.

Contact Information

Unicorn Currencies Limited (Canada)
5577 153A Street, Suite 207
Surrey, V3S 5K7, British Columbia, Canada
FINTRAC Registration No: C100000159
Email: compliance@unicorncurrencies.com
Phone: +1 (548) 488-0818

Unicorn Currencies Ltd (United Kingdom)
4th Floor, Silverstream House, Fitzroy Street
London, W1T 6EB, United Kingdom
ICO Registration No: ZB534346
Email: compliance@unicorncurrencies.com
Phone: +44 (20) 8064-0818

This Safeguarding Policy Statement is provided for informational purposes and does not constitute legal or financial advice. Clients should carefully review the Master Services Agreement and seek independent advice if needed.

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