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?



[ QUOTE ]

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.


[/ QUOTE ]

[cardman]

[ QUOTE ]
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?



[/ QUOTE ]

Nope. You've got it right.

[hypermegachi]

it's probably just to cover their ass when something happens.

[PokeReader]

Look, this is something people don't understand much. Even if they are holding it in a segregated account, one they use those accounts as an asset for loan purposes, and if they go bankrupt, people, i.e. banks and bondholders, will always have first dibs at any money, including yours. That is why I think no one, except maybe Ike, will see their Neteller fund again, because it will be too tempting to reorganize and clear their debts, which I am sure they will not be clearing enough cash to pay once the U.S. cash accounts are paid out. Get it. Your money is gone. Plan on it, and on the off chance you get some of it back you will be happy.

[PatInTheHat]

Yeah when I read that basically I got the feeling that my money is not safe and use their site at your own risk. I plan to never leave large ammounts of funds on it.