How does Tally protect my money?

At Tally, we believe money should hold its value over time and remain in the customer’s control. So much so, we pioneered a new type of money that protects and benefits the customer, not the bank.

Whilst the value of your Tally is protected from inflation and risky fractional-reserve banking practices, here’s a reminder of some of the other ways Tally has you covered.

How is Tally regulated? What licence does it hold? 

TallyMoney Ltd is listed with the Financial Conduct Authority (FCA) as an E-Money Directive (EMD) Agent (FCA Ref. No. 902059) under FCA-licensed Electronic Money Institution, PayrNet Limited (“PayrNet”) (FCA Ref No. 900594).

Is Tally covered under the Financial Services Compensation Scheme?

Your Tally account is not covered by the Financial Services Compensation Scheme (FSCS). The FSCS is an independent statutory organisation that reimburses customers holding fiat currency (i.e. Pounds) up to a maximum of £85,000 (or £170,000 in the case of joint accounts) if a fractional-reserve financial institution with a banking licence (i.e. a bank) fails. 

With Tally, the asset that underpins the money (i.e. physical gold) is real, and it’s all there, in a Brink’s vault in Switzerland, held on behalf of Tally customers under a custodial arrangement with the added protection of a security trust structure. 

So, whilst Tally is not covered by the FSCS, it is also not limited by it. This means deposits up to, and in excess of, £85,000 are protected. 

In the unlikely event that anything happens to TallyMoney Ltd (or its parent entity Tally Ltd), all of the gold represented as Tally in customer accounts will promptly be sold by the Security Trustee (Woodside Corporate Services Ltd, FCA Ref No. 467652), and the fiat value of each customer account, less a 1% fee, will be deposited into the customer’s designated bank account.  What’s the 1% for? This pays for the legal mechanism that would come into play and the prompt and efficient administration of returning customer money by the Security Trustee. No limits, no caps, just peace of mind.

How is my money safeguarded in transit? 

When fiat currency is transferred into a Tally account, it initially arrives via PayrNet. Whilst typically it only takes a few seconds before your fiat money is converted to Tally, some deposits can take longer to arrive. During this window, your fiat money is protected by PayrNet under the process known as “safeguarding” - a regulator requirement for E-Money Institutions.  

Under this process, E-Money balances must be segregated from all other cash balances, such as PayrNet’s operating funds. PayrNet cannot use fiat funds received for its own purposes or lend those funds to other customers. These segregated balances must be held with a bank and be routinely reconciled to ensure that the sum of all issued E-Money balances is the same as the sum of cash held by the bank in the segregated account. 

So what happens if PayrNet ceases trading?  Well, any money deposited not yet converted to Tally will be made available to the customer, minus any insolvency administrative charges. Whilst the process of distributing safeguarded funds may take longer than a claim under FSCS, your money is still protected. And this would only affect you if PayrNet went into administration during that very temporary period before your fiat money is converted to Tally.  Once your deposit appears as Tally in your Tally account, you’re good as gold.