(1) In this Regulation “user’s funds” means the funds that have been received by a payment institution from a payment service user or through another payment service provider for the execution of a payment transaction.
(2) A payment institution that provides payment services referred to in paragraphs 1 to 6 of the Schedule shall safeguard user’s funds in either of the following ways:
(a) user’s funds -
(i) shall not be mixed at any time with the funds of any person other than the payment service user on whose behalf the funds are held, and
(ii) where the funds are still held by the payment institution and not yet delivered to the payee or transferred to another payment service provider by the end of the business day after the day of receipt, shall be deposited in a separate account in a credit institution or invested in assets designated or approved by the Bank for the purpose of these Regulations as secure, liquid and low-risk assets;
(b) user’s funds shall be covered by a
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