Notes

There are a few misunderstandings in that thread, so I do recommend you refer to the blog post linked a couple of times in this topic above.

The answer is that your money is safe! The whole point of the Trust Bond is that it is put in a trustee-controlled account along with the interest you have been promised.

This money is paid by dozens in advance, and once it is in that trust, you know you will get it back whatever happens to us.

These were the clarifications we made in the blog post after reading topics on Reddit, MSE and elsewhere where we realised people were getting confused.

Regarding FSCS, there are two kinds of protections so people get confused (this is from the FSCS site):

If you have money in savings with a UK-regulated bank or building society, the FSCS deposit guarantee scheme offers protection for up to £85,000; this applies per person, per institution.

If you’ve got a risk-based investment, and the investment firm goes under, a different FSCS protection applies. With investments, the level of protection is £50,000 per person, per authorised firm. For example, if you lost money because an authorised firm gave you bad advice or negligently managed your investments, you would be covered for up to £50,000 if the firm fails.

In the case of 1, dozens is not a bank, so it does not apply, but your cash in the current account is an emoney account, so it is already kept safe and protected.

When you move money into a dozens savings account, we (currently) hold these client savings accounts at Bank of Scotland, so they are protected by the BoS / Lloyds Banking Group FSCS protection, not ours. Once we have our own banking licence, this will change.

In our case, we do have a licence for investments and therefore you are protected in the second instance - for bad advice and default, but not the risk associated with the investment itself, up to £50k