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SAFEGUARDING

Safeguarding client funds, verifiable in the ledger

Client money is safe is a claim. A reconciliation that proves it, on any date, from the books, that is safeguarding. FinLabCore builds the second kind: client funds booked as liabilities, structurally separated from the institution’s own money, reconcilable against counterpart records with dedicated reporting.

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Client funds as a liability to the customer

In the platform’s books, a client’s balance is exactly what it is legally: a liability the institution owes the customer. Not a number in an app table, not a slice of someone’s omnibus view, a position in a classical chart of accounts, derived from balanced, write-once entries. Get this representation right and everything downstream, separation, reconciliation, reporting, follows from accounting rather than from process.

Client money segregation by construction

Client liabilities are held against bank-side positions that keep safeguarded client money separate from the institution’s own funds, a structural separation in the books, not a convention someone must remember to follow. Own funds and client funds cannot blur, because the chart of accounts does not give them anywhere to blur.

That structure is the precondition for everything a safeguarding regime asks of you: knowing the client-money total at any moment, and showing where it sits.

Safeguarding reconciliation, with the reports to prove it

Separation without reconciliation is a diagram. The platform reconciles client balances against their counterpart records, alongside correspondent positions, fee income and exchange settlement, with dedicated reconciliation reporting, produced over any period as downloadable files from the management reporting suite. When the question comes, from a regulator, an auditor, your own board, the answer is a report, not a project.

Why this requires owning the books

A platform that mirrors a provider’s balances can promise safeguarding; it cannot demonstrate it, because the numbers it shows are not its own accounting. FinLabCore’s safeguarding stands on the ledger: balances derived from entries, corrections as new postings, dual valuation, daily revaluation, the client statement and the general ledger agreeing by definition. Safeguarding is not a feature added to that ledger; it is a consequence of it.

For what this means across an EMI or MSB’s full obligations list, see Core Banking for EMIs & MSBs.

Safeguarding client funds FAQ

How are client funds represented in the books?
As liabilities to the customer, in a classical chart of accounts, derived from balanced write-once entries, held against bank-side positions that keep safeguarded money separate from the institution’s own funds.
The account structure itself: separation is built into the chart of accounts, so it holds by construction rather than by procedure.
From the platform: client balances reconciled against counterpart records, with dedicated reconciliation reporting available over any chosen period as downloadable files.
On the accounting side, yes, crypto is booked in the same double-entry ledger at full precision, so client crypto positions live in the same books under the same liability structure. How a safeguarding regime treats crypto in your jurisdiction is a question for your regulator and counsel.
Because it shows mirrored numbers, not its own accounting: an omnibus view can assert that client money is safe, but it has no books of its own from which to demonstrate it.
Books where the statement and the general ledger agree by definition, a write-once entry history with business and registration dates, and reconciliation reports on demand, evidence, not assertions.

Ask for the reconciliation, not the reassurance

In the demo, we produce the safeguarding reports in front of you, from the same books the platform runs on.

Book a Demo  ·  See the Ledger.