We’re often asked what would happen if TallyMoney ran into trouble as a business and went into administration. Even with segregated client money or assets such as gold that are “ring-fenced”, the winding down and returning of money to clients can be a very lengthy process. This can also be a very costly process that administrators will need to be paid for.
We wanted to set up a process and system that would mean our customers receive their money without delay and not have to wait for administrators to work out who is owed what. A kind of a “living will”.
The security trustee arrangement does exactly this. The following process would be triggered in the event of TallyMoney Ltd going into administration:
1. All the physical gold that is owned by TallyMoney customers and represented in their Tally accounts would immediately be under the control of the Security Trustee, Woodside Corporate Services Ltd.
2. The Trustee would, whilst maintaining strict confidentiality of the information, take delivery of individual client details, their TallyMoney holdings and their default bank account.
3. The Security Trustee would cause all the Tally gold to be sold at the prevailing market price.
4. 99% of each individual customer’s funds would be returned to their default non-tally bank account.
The cost of the security trustee structure and process to ensure the efficient administration and allocation of 99% of all customer funds to the relevant customer’s default non-Tally banking account is 1% of the funds being returned. We think this is a fair a reasonable price for the certainty it gives to Tally customers.
You could compare this to the Financial Services Compensation Scheme (FSCS) that will compensate you the full amount in your bank account, but this is only up to £85,000 per person per bank account and the length of time to receive any money to be paid under the scheme may be a considerably long period. So whilst Tally is not covered by the FSCS, we are also not limited to the £85,000 cap the scheme provides.
All tally shown in customer accounts is 100% real, physical gold stored in a secure vault in Switzerland. This is unlike a bank account where the bank lends out the customer deposits and may only have 10% of customer deposits available for immediate withdrawal. This is called fractional reserve banking. TallyMoney operates full (100%) reserve banking.