Like all other Danish financial institutes, November First is under supervision of Danish Financial Supervisory Authority. The overseeing of financial institutes, makes sure that we follow guidelines for procedures and that we are following the Financial Supervisions rules, which includes that:
- Client’s funds at no time are at risk
- That we are not participating in money laundering or terror financing
When our customers make a payment through November First, the currency will never be held on an account that is involved in the operation of November First. In other words, we use segregated accounts, which also means that;
- A deposited sum from a costumer is not November First's funds
- Costumers funds will never be used as a distraint should November First go bankrupt
The money from our costumers that is placed in the accounts provided by November First, still belongs to the costumers until SEB on behalf of November First, sends the payment to the recipient.
Should November First go bankrupt, we are initially obligated to stop providing a currency exchange rate for our costumers, and they will be unable to use our service. November First is then obligated to process all remaining transactions that are "In progress" and afterwards shut down operations. This is an international method used to cater to customers "settlement Risk" (Safety of delivering of costumers money).
You can read more about the principles of the Settlement Risk in the link below.
https://en.wikipedia.org/wiki/Herstatt_Bank
Besides the above stated, November First is duty-bound by both SEB and The Danish Financial Institute to put down a solvency for assurance, as a safety to cover our costumers eventual losses in case of bankruptcy. If the amount of solvency hasn't been calculated by the earnings of the company. The company will lose its license, this means the leadership and board will take full responsibility.
When a financial institute goes bankrupt, it is known to have a deposit guarantee. This will take effect and all losses for up to 750.000 DKK will be covered. The deposit guarantee will only have an effect on customers that has finances in a bank account, and by this, it has no relevance for either November First or SEB. November first is a partner to SEB alone. We are only in relation with payments and are therefore part of the "Settlement Risk" principle.