According to the Financial Conduct Authority, which regulates APIs and EMIs, clients’ e-money is protected through an internal process known as safeguarding.  Electronic money institutions and payment institutions must comply with the specific safeguarding requirements set out in EMD2 and PSD2. However, it’s important to note that payment institutions that only offer payment initiation or account information services are not subject to any safeguarding requirements.

Also, regarding safeguarding, funds received by electronic money institutions for services related to e-money issuance and unrelated payment services are not allowed to be kept in the same safeguarding account.