Remote Payment Services: Safeguarding rules for Contractor Management (CM) and Payroll Products

Article author
Claire McCorkindale
  • Updated

When you use Remote’s regulated financial services in our products, such as Contractor Management (CM) or Payroll, and your entity is based in Canada or the European Economic Area (EEA), your funds are protected under safeguarding rules established by our regulators in these regions.

This article explains what safeguarding means, how we keep your money safe, and when it applies.

What is Safeguarding?

Safeguarding is a legal requirement for payment service providers like Remote Payment Services Europe BV. It ensures that your money is kept separate from our business funds and can only be used to carry out your payment instructions.

In short:

  • Your funds are not used for Remote’s operating expenses.
  • Your funds are held in special safeguarding accounts with trusted financial institutions.
  • In the unlikely event of Remote’s insolvency, safeguarded funds would be returned to you after the deduction of any applicable administration costs.

When does safeguarding apply?

Safeguarding applies only to funds handled as part of our regulated payment services, for example:

  • Payments to contractors using CM product.
  • Payroll processing using Payroll product.
Safeguarding only applies to certain Remote services. If you’re using services other than Contractor Management or Payroll, and your company entities are not based in Canada or the EEA, standard commercial terms will apply.

How we safeguard your funds

We follow strict rules from our regulators:

  • Dedicated safeguarding accounts: Funds are kept in separate bank accounts at reputable institutions.
  • Daily reconciliation: We match our safeguarding account balances to client funds owed.
  • Independent oversight: Compliance teams monitor safeguarding processes and perform regular checks.
  • No lending or investment: We do not use your safeguarded funds for loans, investments, or business activities.

What Safeguarding does not cover

Safeguarding is not the same as a bank deposit protection scheme:

  • It does not guarantee repayment within a fixed time if insolvency occurs.
  • It does not protect against currency fluctuation losses.

Questions?

If you have concerns about how your safeguarded funds are handled please reach out to us. 

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