FCA orders Wirecard to suspend activity in UK

Monday 29 June 2020 11:25 CET | News

The UK Financial Conduct Authority has ordered Wirecard to suspend operations in the UK and warned it not to dispose of any funds, following the companies' insolvency filing in Germany.

The FCA, which regulates e-money and other financial companies in the UK, said it took these steps to protect consumers in the home market. Wirecard filed for insolvency after auditors determined that 1.9 million euros (USD 2.1 billion) could not be accounted for and the company last week fired CEO Markus Braun, who was later arrested by German authorities.

The FCA said it has been working closely with Wirecard UK and other regulatory agencies to make sure consumers are protected. The European Commission has asked the European Securities and Markets Authority to investigate the collapse of Wirecard AG and the role of financial regulators in terms of how they responded to the collapse.

The BaFin, a German regulatory body, told Mobile Payments Today that it began investigating potential market manipulation in January 2019 and reported findings of its probe to public prosecutors in Munich by April 2019.

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Keywords: FCA, Financial Conduct Authority, Wirecard, Wirecard scandal, Germany, Europe, payments company, financial authority, European Commission, payments company, European Securities and Markets Authority
Categories: Payments & Commerce
Countries: United Kingdom
This article is part of category

Payments & Commerce