The payments sector is a priority area for the FCA, and the consultation follows ongoing work to ensure these businesses are adequately protecting customer funds. The guidance is part of a broader programme of work the FCA was planning to consult on later in 2020, to set out its expectations for the payments sector.
The guidance will provide additional direction for businesses to meet their safeguarding requirements and it outlines the FCA’s expectation of payments companies to put in place more robust plans for winding down, so that customer funds are returned in a timely manner.
In 2019, the British authority carried out an assessment on companies’ safeguarding practices and sought an urgent update from these about their financial arrangements in relation to the pandemic. The consultation, which will apply to all payment companies, will last for two weeks, and closes on 5 June 2020. If confirmed, the final guidance will be published at the end of June.
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