Multi-currency account types

Multi-currency account types

There are several types of accounts that can be created. Which you should use will depend on your agreement with ClearBank, and the purpose of the account.

When onboarding for multi-currency accounts, you are given a new institution master account and an institution operating account. These are separate from your GBP accounts.

Your institution master account is not an account of its own; it is a superset of all your other accounts. Your institution operating account holds your own operational funds.

You can create additional operational and safeguarding accounts as needed. You can also create virtual accounts within a general segregation account or a general client account.

It is important to select the correct kind for an account when you create it, as this cannot be amended later. The account kind determines the usage of the account, for example, whether the account can be used for safeguarding funds.

When you create a real multi-currency account, you should use the Kind field to select YourFunds, DesignatedSegregated, GeneralSegregated, DesignatedClient, or GeneralClient. The Kind value determines the autogenerated prefix assigned to the account, for example, 'Gen Seg'. The prefixes for each account are shown in the figure above.

Ways to organise your multi-currency virtual accounts

Your general segregation account can be used for multiple customers' funds that need to be safeguarded and should not be used to hold any of your own funds. If you would like to create virtual accounts within a general segregation account, you will need to decide the structure of your general segregation accounts. In all cases, a virtual account will support the same currencies as its parent real account.

Examples you could choose are shown below:

• Example 1: You can choose to have a general segregation account that holds one currency (e.g. USD). This means when you create a virtual account under this real account, it will be enabled for that one currency.

• Example 2: You can choose to have a general segregation account that holds specific currencies (e.g. EUR, SEK, and USD). This means when you create a virtual account under this real account, it will be enabled for those specific currencies.

• Example 3: You can choose to have a general segregation account that holds all currencies. This means when you create a virtual account under this real account, it will be enabled for all currencies.

Alternatively, you can enable your preferred choice of currencies for any real account you create.

To learn about the endpoints you will use to create and manage multi-currency accounts, refer to Manage multi-currency accounts.

Safeguarded accounts

Safeguarding ensures that your customer's money is held separately from your operating funds. For e-money institutions (EMIs) and payment institutions (PIs), having at least one safeguarded account in place is a Financial Conduct Authority (FCA) requirement. ​

​You can receive an FCA-compliant safeguarding letter from ClearBank proving your regulatory compliance in relation to the account. Safeguarding gives your customers peace of mind knowing that their money would be protected if your business were to become insolvent, and all eligible funds are FSCS protected up to £85,000 across all accounts held at ClearBank.

If you require safeguarded accounts, you must raise a Freshdesk ticket to request a safeguarding letter once you have created a general segregation or designated segregation account. The account will only be safeguarded if you have received a safeguarding letter from ClearBank.

Client accounts

Client accounts allow you to receive and hold money for (or on behalf of) your customers. These accounts separate your customers' CASS 7 investment funds from your own operating accounts. You’d likely opt for client accounts if you’re holding money on behalf of a customer, typically in connection with the Markets in Financial Instruments Directive (MiFID) or designated investment businesses.