The UK Gambling Commission will now provide consumers with a means to identify licensed operators' self-assessed "Levels of Protection" with regard to their funds.
All operators licensed by the Gambling Commission have a deadline of December 31, 2014 to rate themselves as basic, medium or high in terms of protection for customer funds.
Levels of Protection:
- Basic: Segregation of customer funds. Customer funds are kept in accounts separate from business accounts but they would form part of the assets of the business in the event of insolvency. These accounts may include bank accounts, investment accounts and other accounts.
- Medium: Quistclose or equivalent. Customer funds are kept in accounts separate from business accounts; and arrangements have been made to ensure assets in the customer accounts are distributed to customers in the event of insolvency. The arrangements falling in the medium category include Quistclose accounts and insurance arrangements.
- High: Independent Trust Account. Customer funds are held in a trust account which is verified and subject to controls by an independent trustee.