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Modulr - Easily open a tenement account today
17-09-2024
BY CHRIS KRIEGLER
Most traditional banks do not offer specific products tailored for tenements and their repairs, making the management of shared repairs highly challenging. The Novoville Shared Repairs app addresses this issue by allowing owners in a virtual tenement to open a Modulr payment account, specifically designed to manage their property's repair and maintenance needs.
Modulr is a financial services provider regulated by the UK’s Financial Conduct Authority (FCA). They have been offering services such as digital accounts and transfer capabilities (called “e-money”) since 2016. £100bn flows through their system every year. For more information, please visit Modulr's FAQs here.
This simplifies repairs’ financial dealings, negating the need for traditional maintenance accounts from high street banks. There are no
extra charges for account opening, maintenance, or closure (all are included in Novoville’s fee). Novoville, as an Authorised User, can manage the
account on your behalf (such as move money around), following your direct instructions. These accounts are usually opened within 48-72 hours.
Modulr offers a modern alternative to conventional bank accounts. It provides all the essential features like account number, sort codes and digital access. As an Authorised Electronic Money Institution, Modulr FS Limited is empowered to issue e-money, hold client funds in safeguarded accounts, and offer related payment services, adhering to stringent regulatory standards.
Money held in your account is yours. It is not Novoville’s or Modulr. Modulr provides a robust safeguarding mechanism for your funds. As they explain:
“Modulr is required by law to use a process called Safeguarding to protect customer money. This means we ensure that the funds we receive in exchange for e-money are segregated from all other funds that we hold and they cannot be used for any other purposes. The funds we safeguard are therefore completely separate from the additional funds that Modulr holds to meet its corporate obligations and run its business. These safeguarded funds must be held in specially designated client accounts at credit institutions (banks), the Bank of England or invested in secure, liquid assets that the FCA has approved for such purposes . Furthermore, as an EMI, we must also hold an additional amount equal to 2% of the total value of safeguarded client funds in our own funds, which are held separately to those client funds. The purpose of the 2% additional funds is to ensure that, in the case of any problems with our business, there are enough funds to support an orderly business wind-down and the process of returning of client funds. Combining this ‘2%’ requirement with safeguarding means that there is a protection mechanism to help ensure an orderly wind-down and return of customer funds if ever required.”
You can verify Modulr's registration with the FCA here, and Novoville's here.
The money held in your account is not invested by Novoville or Modulr, and is not generating income. Novoville adheres to the Law Society's guidelines regarding interest payments, making them payable upon request. However, to keep our charges low, we kindly ask that our clients do not ask for interest payments.The app today doesn’t offer “two signatories” over the account. This is unnecessary thanks to the way the app has been designed. This rule was designed to avoid money being diverted or misspent. Through the app, it’s only possible to pay the contractor that has been selected in order to carry out the work (the beneficiary of the funds is locked).
Related Articles:
- Emergency Repairs on the Novoville Shared Repairs app
- "Missing shares" for common repairs: what can your council do for you?
- Landlord Story: managing repairs from a long-distance
- Legal Responsibilities and Obligations of Property Owners for Shared Repairs
What is Modulr?
Modulr is a financial services provider regulated by the UK’s Financial Conduct Authority (FCA). They have been offering services such as digital accounts and transfer capabilities (called “e-money”) since 2016. £100bn flows through their system every year. For more information, please visit Modulr's FAQs here.
Benefits of using Modulr payment accounts through Novoville app
This simplifies repairs’ financial dealings, negating the need for traditional maintenance accounts from high street banks. There are no
extra charges for account opening, maintenance, or closure (all are included in Novoville’s fee). Novoville, as an Authorised User, can manage the
account on your behalf (such as move money around), following your direct instructions. These accounts are usually opened within 48-72 hours.
Modulr vs Traditional Banking
Modulr offers a modern alternative to conventional bank accounts. It provides all the essential features like account number, sort codes and digital access. As an Authorised Electronic Money Institution, Modulr FS Limited is empowered to issue e-money, hold client funds in safeguarded accounts, and offer related payment services, adhering to stringent regulatory standards.
Safeguarding Your Funds
Money held in your account is yours. It is not Novoville’s or Modulr. Modulr provides a robust safeguarding mechanism for your funds. As they explain:
“Modulr is required by law to use a process called Safeguarding to protect customer money. This means we ensure that the funds we receive in exchange for e-money are segregated from all other funds that we hold and they cannot be used for any other purposes. The funds we safeguard are therefore completely separate from the additional funds that Modulr holds to meet its corporate obligations and run its business. These safeguarded funds must be held in specially designated client accounts at credit institutions (banks), the Bank of England or invested in secure, liquid assets that the FCA has approved for such purposes . Furthermore, as an EMI, we must also hold an additional amount equal to 2% of the total value of safeguarded client funds in our own funds, which are held separately to those client funds. The purpose of the 2% additional funds is to ensure that, in the case of any problems with our business, there are enough funds to support an orderly business wind-down and the process of returning of client funds. Combining this ‘2%’ requirement with safeguarding means that there is a protection mechanism to help ensure an orderly wind-down and return of customer funds if ever required.”
You can verify Modulr's registration with the FCA here, and Novoville's here.
Compliance with Tenement Management Scheme’s rules
The money held in your account is not invested by Novoville or Modulr, and is not generating income. Novoville adheres to the Law Society's guidelines regarding interest payments, making them payable upon request. However, to keep our charges low, we kindly ask that our clients do not ask for interest payments.The app today doesn’t offer “two signatories” over the account. This is unnecessary thanks to the way the app has been designed. This rule was designed to avoid money being diverted or misspent. Through the app, it’s only possible to pay the contractor that has been selected in order to carry out the work (the beneficiary of the funds is locked).
Related Articles:
- Emergency Repairs on the Novoville Shared Repairs app
- "Missing shares" for common repairs: what can your council do for you?
- Landlord Story: managing repairs from a long-distance
- Legal Responsibilities and Obligations of Property Owners for Shared Repairs
