'Houston, We Have A Problem': FCA Fires Enforcement Warning Over Safeguarding

The Financial Conduct Authority (FCA) has issued a stern warning to payment and e-money institutions over “unacceptable” practices in safeguarding client funds, as well as around risk governance and financial management.

Several senior officials at the UK regulator emphasised on Tuesday that reviews of the sector carried out since late 2017 — when a specialist payments division was established — have yielded troubling findings and that firms should expect enforcement action.

Declaring a “Houston, we have a problem” moment, the FCA’s head of payments supervision, Maha El Dimachki, warned firms that ensuring safeguarding arrangements are up to scratch “is certainly not a can you want to be kicking down the road”.

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