The Guard FAQ

The Guard is designed for:

• SMEs that invoice clients in foreign currencies or receive bills from overseas suppliers
• PSPs and neo-banks that serve SMEs and want to offer FX protection as an embedded service

You pay a Guard Fee, which varies based on:

• The FX rate at time of invoice, which reflects how much the currency pair has fluctuated recently and how uncertain its future value may be
• The invoice amount
• The time until the due date
• Payment cancellation history
• Payment pattern (e.g. past payment delays, average cycle times)

You can either:

• Pay the fee upfront, or
• Choose to pay later, in which case a small adjustment is added to reflect risk and funding costs.

If the invoice is not paid at all, the Guard is void and no payout is made.

• If you paid the Guard Fee upfront, that's your only cost.
• If the fee was included in the invoice, you won't recoup that cost from your client.

The protection is reduced in line with the amount actually paid.

For example, if your invoice was for $100,000 and only $50,000 is paid, the Guard will only cover that $50,000.

Yes — in limited circumstances.

Cancellation is only permitted before the Settlement Window begins.

If the protection is no longer needed (for example because the underlying invoice or payment is cancelled or changes), the Guard can be cancelled for a partial refund of the Guard Fee.

The refund amount depends on:

• the remaining maturity of the Guard, and
• the time elapsed since purchase

The applicable refund policy is clearly disclosed at the time of purchase. The refund value is never greater than the original Guard Fee paid, similar to an insurance product.

This ensures the Guard remains a risk-management service, not a speculative instrument.

No.

A Guard is strictly linked to a specific invoice or payment obligation and cannot be sold, transferred, or traded on its own.

A Guard can only:

• be used to protect the linked payment, or
• be cancelled for a refund value in accordance with the published refund policy

It is not a standalone financial product and cannot be used for speculation.

The Guard is designed as fit-for-purpose FX protection connected to a real commercial payment.

• Allowing cancellation with a capped refund supports legitimate commercial flexibility
• Prohibiting resale or trading ensures the Guard remains outside the scope of speculative or investment products

This structure aligns the Guard with its role as a payment-linked protection service, rather than a tradable financial instrument.

FRS 102 and IFRS (IAS 21) require that:

• Invoices in foreign currency be recorded at the spot rate on the transaction date
• Any gain/loss at settlement be recognised in the P&L

Since the Guard is not a derivative, it does not require MTM, fair value accounting, or hedge documentation.

The Guard is considered a service cost, not a derivative or financial instrument. It qualifies under the "means of payment" exemption, so:

• No mark-to-market (MTM)
• No hedge accounting required
• No impact on your revenue recognition method

Depending on size, the Guard Fee is:

• Expensed immediately if immaterial (e.g. <1% of revenue)
• Recorded as a prepaid cost and amortised when the invoice is paid if material

No. Revenue is still recognised in your accounts at the invoice date exchange rate — just like normal.

• If at settlement, you use the Guard, your settlement rate = invoice rate → no FX gain/loss
• If at settlement, you don't use the Guard, and the FX rate improves → you book an FX gain

• If the market moved against you, you use the Guard → receive your minimum GBP amount (no FX loss)
• If the market moved in your favour, you don't use the Guard → receive more in GBP, and record an FX gain