Meteor Asset Management acts as our deposit administrator for some of our partner banks, holding your money in what is known as a “bare trust” arrangement. Their role is to transfer your money between your Transaction Account and a partner bank’s account. This process takes place when you fund a savings account and when your deposits are returned to you at maturity, along with any interest or profit you have accrued. While providing this service, Meteor Asset Management has no claim to your funds and administers them on your behalf.
Are my funds protected when in transit from my Transaction account to a Partner Bank savings account, via Meteor Asset Management?
Yes, as client money held at HSBC is covered by the Financial Services Compensation Scheme (“FSCS”), it means that during those periods in which Meteor holds your funds in its Client Bank Account, your funds are protected by the Scheme up to £85,000 per person, per banking group. Please note that the FSCS protection limit of £85,000 is cumulative across any eligible deposits you hold across a banking group.