E-money – Is the FCA Going to ‘Wield the Whip’?

The FCA in London are making changes and will be starting to undertake more audits, checks and stronger enforcement upon their e-money licence-holders, passporting and passported organisations and will be looking for proper due diligence and clarity of compliance with regulations as they are now aware that there are issues in the market. How far will they go? It is unlikely that they will do a full job to ensure that everyone does as they should, and it is clear that they do not have the resource to enforce the regulations in the way that many markets – and in particular as the card-schemes do – but they must move forward as the lack of compliance is becoming somewhat dangerous.

E-money Licence Changes

Recent new financial services legislation in the UK has led to the Financial Conduct Authority (FCA) introducing a Payments Systems Regulator from April 2014. The ECB, and the European Commission are also proposing ways to regulate and police the whole e-money arena, as are the international card schemes. The FCA is now also starting to review and audit the e-money licences they have granted previously and for observance with ALL regulations and also best-practices. Click to Continue