We offer a range of financial products because we hold two types of regulatory licences. Our e-money licence allows us to offer a current account and our MiFID licence means we can offer investment products like bonds and thematic investment portfolios.
The Dozens team have worked super hard to bring you all of this together in one app, to create a new home for your money. However, it does mean the protection offered in different parts of the app varies because they are different financial products.
So, below are the details of exactly what protection you have in each area of the app.
The money you see in the Spend section is all part of your current account. This money is securely held in a segregated account at a UK high street bank in accordance with the FCA requirements and the Electronic Money Regulations 2011. Dozens is not a bank, this means that Dozens has no access to your money for its own purposes. For this reason, unlike with some other current accounts, FSCS protection is not considered necessary as the money does not leave the segregated account and is separate from Dozens’ finances in case of default.
Your Cash Savings can be found at the top of the Save section. These are covered by the Financial Services Compensation Scheme (FSCS) for up to £85,000. Please be aware any bonds you invest in are not part of cash savings.
The 5% p.a. fixed interest bonds can be found at the bottom of the Save section. They are our first proprietary financial product and have been designed to help early stage savers earn higher interest with practically no risk. These bonds are not regulated by the FCA.
These bonds are investment products and FSCS protection does not apply. However, because of this and to help early stage savers benefit from the high interest rate, for every bond purchased we will deposit the money invested plus the promised interest into a separate trustee controlled account (where we can no longer touch it.) This will be used to pay you in the event of any default.
Before you purchase any financial product in the Invest section you will be asked to complete a suitability assessment. This is to determine your financial understanding, experience and security to ensure we’re acting responsibly and only offering financial products suitable to you.
Coming soon We are finalising our ‘Emerging Markets bonds’ that will be found in the Invest section of the app. Details will be released soon. These bonds will not be regulated by the FCA.
Our thematic portfolios are found in the Invest section. They are exposed to fluctuations in the market, which means that the value of your investment may go up as well as down.
The level of risk varies, which is why we ask you to complete a suitability assessment before you invest, to ensure you’re only offered products suitable to you.
You are covered by the Financial Services Compensation Scheme for up to £50,000 for our misselling of any investment products. Remember we do not give financial advice, so you should speak to an expert if you are unsure about investing.
Updated 20 March 2019 – Details of 5% p.a. fixed interest bonds changed