How Prosper protects your money
At Prosper, we understand that entrusting your money with a financial institution can be a daunting decision. That's why we want to assure you that your money is safe and secure with us. We are regulated by the Financial Conduct Authority (FCA) and your cash and investments are covered by the Financial Services Compensation Scheme (FSCS) up to certain limits, providing you with double protection for your funds.
FCA protection
The FCA is an independent regulatory body that oversees the financial services industry in the UK. As a regulated firm, we are required to adhere to strict rules and regulations set by the FCA to ensure the protection of our customers' money. This includes maintaining adequate capital reserves, conducting regular audits, and providing transparent and accurate information to our customers.
FSCS protection
The FSCS is a government-backed compensation scheme that protects customers' cash deposits and investments in the event that a financial institution goes out of business.
Cash savings: Cash held by Prosper is placed with underlying authorised banks or financial institutions. Where cash is held as a deposit with an FSCS-covered bank or building society, it is eligible for protection under the FSCS deposit scheme up to £120,000 per person, per institution, depending on where the cash is held.
Investments: Investments held with Prosper may be eligible for protection under the FSCS investment scheme, up to £85,000 per person, per firm, subject to FSCS rules and eligibility criteria.
FSCS protection for investments is different from deposit protection and does not cover normal market movements or investment performance. Whether a claim is eligible, and the amount of any compensation, is determined by the FSCS based on the specific circumstances.
What happens to your money if Prosper goes out of business?
All client money is held by Prosper on trust and is segregated from our own funds in accordance with the FCA’s client money (CASS) rules and guidance. This means client money is kept separate from Prosper’s own assets, and creditors of Prosper would have no legal claim over it. We are not permitted to use client money to meet our own obligations.
Cash balances are placed only with institutions that hold a UK banking licence and are covered by the FSCS. The FSCS is a government-backed compensation scheme that protects eligible deposits up to £120,000 per person, per institution, in the unlikely event that a bank, building society or credit union fails. A client’s individual level of protection depends on their total balances held with each underlying institution. Further information is available on the FSCS website.
How to retrieve your money
If you need to retrieve your money from Prosper, you can do so easily through our online platform. Simply log in to your account and follow the instructions to withdraw your funds. If you have any trouble, our customer support team is available to assist you.
At Prosper, we take the security and protection of our customers' money very seriously. With our double protection from the FCA and FSCS, you can have peace of mind knowing that your money is in safe hands. If you have any further questions or concerns, please don't hesitate to contact us.