Safeguarding: Lumon Pay Ltd and Lumon FX Europe Limited

Introduction

As an authorised electronic money institution, we are required to take certain steps to protect your money. This process is known as “safeguarding”. Protecting your money is our highest priority, so it’s important to us that you are aware of how we do this.

What is Electronic Money?

When you transfer money to our bank account, we credit your account with electronic money (also known as e-money). You can then use this electronic money to perform currency conversions or make payments.

How do we Protect your Money?

The account you hold with us is an electronic money account rather than a bank account and this means that your money is not protected by any compensation or guarantee scheme (such as the Financial Services Compensation Scheme in the UK and the Deposit Guarantee Scheme or the Investor Compensation Scheme in Ireland). We do not use your money for our own business purposes nor do we lend it to other customers.

Instead, when we credit your account with electronic money, we either:

• Keep an equivalent amount of money completely separate from our own money and place it in a segregated account with mainstream banks; or

• Cover it with an insurance policy which provides you with equivalent protection.

Each year, we appoint an external expert to carry out an independent audit on how we comply with safeguarding requirements.

What Would Happen if Lumon became Insolvent?

In the unlikely event of our business becoming insolvent, your money would be safeguarded and would be protected from the claims of third parties. An insolvency practitioner would be appointed to return your money to you, less any administration costs for doing so.

Where can you Find out More Information?

Our Terms and Conditions, available here, contain further detail about how we protect your money.