Why safeguarding matters
EMIs are not banks, so they are not covered by deposit insurance schemes such as the EU's deposit guarantee scheme or US FDIC. Safeguarding is the alternative consumer protection — and in practice, it can be just as robust.
The two main methods
Either segregated bank accounts at a credit institution (the most common), or low-risk liquid assets held by an independent custodian. Funds cannot be commingled with the EMI's operating capital.
What happens if the EMI fails
An insolvency administrator returns safeguarded funds to clients in priority to other creditors. There is no waiting for a deposit-insurance payout because the money was never on the EMI's balance sheet to begin with.
How qeam.net handles it
qeam.net does not hold client funds. All client money is held and safeguarded by our regulated partner EMI or bank under the rules of its home jurisdiction.