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FCA warms there is “unacceptable risk” among payment firms

In a stern letter to the CEOs of 291 UK payment firms, the FCA says it will “act earlier and more assertively” where common failings are not fixed.


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The Financial Conduct Authority (FCA) has written to the CEOs of all 291 regulated payments firms under its watch, warning them that many still to not have “sufficiently robust controls” in place.

We welcome the competition and innovation we have seen in the payments sector and the improved choice, convenience and value this can provide for customers,” writes Matthew Long, director of payments and digital assets at the FCA.

“However, we remain concerned that many payments firms do not have sufficiently robust controls and that as a result some firms present an unacceptable risk of harm to their customers and to financial system integrity.”

Common failings outlined by the regulator include a lack of documented processes, poor due diligence, inadequate liquidity risk management, a lack of stress-testing and overly-optimistic wind-down planning.

The failings touch on regulatory requirements placed on the firms around safeguarding, risk management, anti-money laundering and fraud, governance, operational resilience and much more.

“Where we identify issues, we will take swift and assertive action to protect customers and ensure market integrity in accordance with the approach to supervision and enforcement described in our Approach Document,” concludes Long.

“The FCA 2022/2025 strategy has committed to act earlier and more assertively in dealing with problem firms.”

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