Moneybookers legal notice contradiction?

[StumpyJoe]

I had to agree to this on the Moneybookers web site. Is it just me or does the second part contradict the first? The first part says they need to keep all of their customers cash separately but the second part basically says that we lose our money if they go bankrupt.

Am I missing something here?



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Issuing e-money is a 'regulated activity' under the Financial Services and Markets Act 2000. Moneybookers Ltd. is regulated by the Financial Services Authority (FSA) of the United Kingdom. The entire balance of your Moneybookers account is protected by regulation in regard to capital, liquidity and float management requirements. We are required to keep the funds received in exchange for e-money in pre-defined low-risk assets and to hold at any time sufficiently liquid assets to be able to redeem all e-money issued. We are legally obliged to make our customers aware that (1) the Financial Services Compensation Scheme (FSCS) does not apply to funds stored on your Moneybookers account; (2) if Moneybookers Ltd. becomes insolvent the funds stored on your Moneybookers account may become valueless and unusable; and (3) consequently, if Moneybookers Ltd. becomes insolvent you may lose the funds stored in your account.


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