After finding “significant shortcomings” in firms’ compliance with rules on safeguarding customer funds, UK regulators have instructed payment and e-money firms to carry out an urgent review of their systems and controls.
The Financial Conduct Authority (FCA) issued a “Dear CEO” letter on Thursday to non-bank payment providers subject to safeguarding rules, which require them to place customer funds immediately into a separate account.
Authorised payment and e-money institutions must “attest to the FCA that they are satisfied that they meet the requirements by July 31, 2019”.
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