What happens if Minted ceases trading?
In the unlikely event that Minted should cease trading, your allocated gold holdings remain your legal property.
Alison
Last Update há 2 anos
We’re not planning on going anywhere. In fact, we move from strength to strength! However, if the worst did happen then a liquidator would be appointed to take control of the business, sell the assets and distribute the proceeds to its creditors.
As part of this process, they would reconcile the funds that we hold in our client account which belong to you, and would return those funds to you, less any costs associated with the liquidation.
Does that mean I’ll get all my money back immediately?
It’s likely that you’ll receive every penny back – however as the liquidator deducts their costs from these funds, there is a risk that you will receive less back than what we are currently holding on your behalf.
Also, given that liquidators need to follow a strict process, there’s also the risk that you won’t receive these funds back immediately or automatically, and there may be a slight delay whilst the liquidators do what they need to do.
Are my funds FSCS protected?
Your funds held with Minted are not covered under the Financial Services Compensation Scheme (FSCS) as we’re not under the scope of the FSCS.
In very simple terms, if your bank were to fail, the FSCS guarantees that you will receive your money back almost immediately – with a maximum coverage of £85,000. Any more than that, and there’s a chance you won’t get it back.
However, as we’re an Electronic Money Institution we’re required to safeguard the entire value of your funds, regardless of the amount, even where this is above £85,000.
So that means that Minted are safer than a bank?
An Electronic Money Institution is neither safer, or riskier, than a bank. There’s key differences between the FSCS and safeguarding which we want to ensure that you’re aware of, and what we’re hoping this has explained.
Whilst the FSCS is capped at £85,000, safeguarding is effectively unlimited. However, the FSCS will repay funds automatically, whereas returning safeguarded funds may be delayed, and may have costs deducted from the liquidators. There’s no ‘better’ method, each has it’s pros and cons.
Should I be worried?
No. Minted continue to move from strength to strength and we’re not planning on going anywhere. We also ensure that we safeguard your funds correctly, as we’re obligated to do. Your funds are safe with us, and like the gold that we hold, we keep it under lock and key.
What about Physical Gold?
Whilst not captured under the FCA’s safeguarding requirements, your physical gold always remains protected, too! We’re planning on being around for a very long time. However, should
the worst ever happen, and the company goes into administration, your gold is safe. When you buy gold with Minted, you own the gold outright and we are just custodians buying on your behalf.
Your gold is off the company balance sheets and is safe from the risk of being seized as part of the administration process where the appointed firm will then be involved in ensuring that your gold is rightfully returned to you.