The funds are not given protection by the Financial Services Compensation Scheme because this is not required. Unlike a traditional bank which receives deposits and lends those funds to borrowers, e-money regulation requires that funds are held for the clients and cardholders benefit only. Trilogy or the bank are not able to either use, lend or pledge as security.
Client and cardholder funds are safeguarded and held in a segregated client account, to which Trilogy/ the bank has no rights. The funds are protected and for the benefit of clients and cardholders only, with a trust deed for added security and protection.