On 4 July 2019, the FCA published a new web page concerning a multi-firm review it had undertaken with 11 non-bank payment service providers to assess how well they meet the requirements for safeguarding service users’ funds in the Payment Services Regulations 2017 and Electronic Money Regulations 2011. The new web page sets out the FCA’s key findings.
The FCA has also published a Dear CEO letter requiring all electronic money institutions and authorised payment institutions to review their safeguarding arrangements, to make sure they fully meet the requirements. These firms should attest to the FCA that they are satisfied that they meet the requirements by 31 July 2019. The FCA will be conducting further work on firms’ safeguarding arrangements, and it expects to see that firms have acted to review and where necessary remediate their processes. Where the FCA finds inadequacies in firms’ safeguarding it will take appropriate action.