Important: Currency Hedger provides access to payment, foreign exchange and currency management solutions through its underlying regulated payment services infrastructure and service providers. Currency Hedger is a white-label / programme management solution owned and operated by Octalas Group Ltd, Ireland.
The specific regulated entity providing a particular payment or foreign exchange service, together with the applicable terms, conditions, safeguarding arrangements and contractual obligations, will be identified as part of the relevant onboarding and account documentation.
Financial services involve risk
Currency Hedger offers products and services designed to help businesses and individuals manage international payments, hold and manage multiple currencies, convert currencies and, where available, manage foreign exchange exposure through hedging products.
These services involve operational, foreign exchange, counterparty, liquidity, regulatory and market risks. Customers should understand the nature of the product they are using before entering into a transaction or contractual commitment.
Past exchange rates, historical performance, indicative pricing or previous transaction outcomes are not an indication of future exchange rates or future results.
International payments
International payments can be affected by a number of factors outside the customer's direct control. A payment may be delayed, rejected, returned or subject to additional checks.
- Compliance checks: payments may be subject to identity, source-of-funds, transaction monitoring, sanctions and anti-money laundering checks.
- Beneficiary information: incorrect or incomplete payment information can result in delays, rejection or return of funds.
- Correspondent institutions: international payments may pass through intermediary or correspondent institutions which can impose additional requirements, charges or processing restrictions.
- Local banking restrictions: receiving institutions or local regulations may restrict certain currencies, countries, beneficiaries or transaction types.
- Timing: settlement times can vary depending on currency, banking systems, weekends, public holidays, compliance checks and intermediary institutions.
Multi-currency account risks
A multi-currency account may allow customers to receive, hold, convert and send funds in multiple currencies. It should not automatically be considered equivalent to a traditional bank account.
Currency Exposure
Holding funds in a foreign currency exposes the value of those funds to movements in exchange rates relative to the customer's base currency.
Account Restrictions
Accounts may be subject to transaction, currency, geographic, compliance or beneficiary restrictions imposed by the relevant service provider.
Settlement Risk
Funds may not always be immediately available for onward payment where settlement, verification or compliance procedures remain outstanding.
Provider Risk
Payment services are provided through regulated financial institutions and service providers. Customers should review the applicable contractual documentation for the relevant provider.
Protection of customer funds
Where a payment service is provided by an authorised payment institution, applicable customer funds may be subject to safeguarding requirements under the Payment Services Regulations and applicable FCA rules.
Safeguarding is designed to protect relevant customer funds in the event of the insolvency of the regulated payment institution. Depending on the applicable safeguarding method, funds may be segregated from the institution's own funds or protected through an appropriate insurance or guarantee arrangement.
Safeguarding is not the same as bank deposit protection. Payment institutions are not banks and payment services do not automatically benefit from Financial Services Compensation Scheme (FSCS) protection.
Customers should refer to the applicable account and service documentation for details of the regulated provider, safeguarding arrangements and the treatment of customer funds.
Currency conversion risk
Foreign exchange markets can move rapidly and unpredictably. Exchange rates can be affected by interest rates, inflation, economic conditions, central bank policy, geopolitical events, political developments, market liquidity and other factors.
When converting one currency into another, the amount ultimately received in the customer's base currency may be higher or lower than expected due to exchange-rate movements.
Currency Hedger does not guarantee that a particular exchange rate will be available unless that rate has been expressly confirmed as part of a completed transaction or contractual agreement.
Forward contract risks
A forward contract allows a customer to agree an exchange rate for a currency transaction that will take place at a future date or within an agreed future period.
Forward contracts can be useful for businesses seeking greater certainty over future currency costs or receipts. However, entering into a forward contract creates a contractual commitment and carries specific risks.
A forward rate can move against you
After entering into a forward contract, the market exchange rate may move significantly in the customer's favour or against the customer.
If the market subsequently moves in the customer's favour, the customer may be unable to benefit from that movement for the amount covered by the forward contract because the agreed contractual rate remains applicable.
Depending on the contractual terms, cancelling, amending or closing a forward contract before its agreed maturity may result in a cost or loss to the customer.
Customers should therefore ensure that they understand the amount, maturity, settlement requirements, collateral or margin requirements where applicable, and cancellation provisions before entering into a forward contract.
Counterparty and provider risk
Currency transactions and payment services may involve one or more regulated financial institutions, payment institutions, banks, liquidity providers, correspondent institutions or other counterparties.
The failure, insolvency, operational disruption or restriction of a counterparty may affect the timing or availability of a transaction or payment.
The applicable regulated provider and contractual documentation will determine the rights, obligations and protections applicable to the customer's specific service.
Market and liquidity conditions
Currency markets are generally highly liquid, but liquidity can vary significantly between currencies, jurisdictions and market conditions.
During periods of extreme volatility, market disruption or reduced liquidity, spreads may widen, pricing may change rapidly and certain transactions may become temporarily unavailable or subject to additional requirements.
Compliance requirements
Financial institutions are required to comply with applicable anti-money laundering, counter-terrorist financing, sanctions, fraud-prevention and customer due diligence requirements.
As a result, Currency Hedger or the underlying regulated service provider may request additional information or documentation before opening an account, processing a transaction, releasing funds or completing a payment.
Transactions may be delayed, rejected, restricted or returned where required by law, regulation, sanctions requirements, internal risk controls or the policies of the relevant financial institution.
Customers should ensure that all information provided during onboarding and throughout the relationship is accurate, complete and kept up to date.
Technology and operational risks
Payment and foreign exchange services rely on technology, telecommunications networks, banking infrastructure and third-party systems.
System outages, connectivity failures, cyber incidents, maintenance, banking interruptions or other technical events may temporarily affect access to accounts, transaction processing or payment settlement.
Customers are responsible for maintaining appropriate security over their login credentials, devices and authorised users and should notify Currency Hedger promptly if they suspect unauthorised access.
Charges, spreads and transaction costs
Currency transactions may involve exchange-rate spreads, transfer charges, intermediary fees, account fees or other charges depending on the product and service used.
The applicable pricing will be communicated through the relevant quotation, transaction confirmation, account documentation or fee schedule.
Customers should consider the total cost of a transaction rather than relying solely on the quoted exchange rate.
Information is not personal financial advice
Information provided by Currency Hedger regarding currencies, exchange rates, market conditions or hedging products is provided for general informational purposes and should not be regarded as personal investment, financial, legal or tax advice.
Customers should consider their own circumstances, objectives, financial position and risk tolerance and obtain independent professional advice where appropriate.
Understand your exposure
Businesses using Currency Hedger for international payments or currency management should consider their underlying commercial exposure before entering into any FX transaction or forward contract.
Customers should ensure that transaction amounts, settlement dates and currencies are consistent with their genuine underlying business requirements.
Particular care should be taken where future receipts, payments, invoices or contractual obligations may change after an FX hedge has been established.
Customers must understand the product
Before using any Currency Hedger service, customers should read the applicable terms, conditions, product documentation, pricing and risk information.
By entering into a transaction, customers acknowledge that they have considered the risks relevant to the particular service and have obtained independent advice where they consider it necessary.
Important Risk Statement
Currency Hedger is a white-label / programme management solution owned and operated by Octalas Group Ltd, Ireland.
Payment services, foreign exchange services and related financial services available through Currency Hedger are provided through the relevant underlying regulated financial institution or service provider, subject to the applicable regulatory permissions, terms and contractual arrangements.
Currency Hedger does not guarantee exchange rates, transaction outcomes, uninterrupted access to services or the availability of funds where a transaction or account is subject to regulatory, compliance, banking, settlement or contractual restrictions.
This Risk Disclosure should be read together with the Currency Hedger Terms and Conditions, Complaints Procedure and Policy, Privacy Policy, applicable product documentation and any customer agreement issued by the relevant regulated service provider.