The UK Gambling Commission (UKGC) national regulatory body has announced that all operators licensed in the UK must display a customer fund protection rating within their terms and conditions.
The system will provide customers in the UK market with access to additional information about how their funds are protected, payment processing services and the various fund terms of the operator.
Licensed operators have until December 31 to publish the ratings system, which will feature three tiers of fund segregation and protection.
Following this initial deadline, all operators should then display their fund rating to depositing customers in the UK by February 2.
The system will require consumers to acknowledge the operator’s rating before being able to proceed with the transaction of their deposit.
The first tier of the system is ‘Basic – Segregation of customer funds’, under which customers’ 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.
Under the second tier ‘Medium – Quistclose or equivalent’ level, 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 final ‘High – Independent trust account’ tier states that customer funds are held in a trust account which is verified and subject to controls by an independent trustee.
source : www.igamingbusiness.com