FCA: Wirecard can re-start business

By Daniel Lanyon on Tuesday 30 June 2020

Digital Banking

The UK's financial regulator has said that the UK subsidiary of Wirecard, that powers many fintechs, can now resume regulated activities.

FCA: Wirecard can re-start business
Image source: Photo by energepic.com from Pexels

Wirecard's UK arm can turn back on services used by fintech firms with millions of customers cut off following a 72-hour outage.

On Friday the UK's financial regulator the FCA, somewhat out of the blue, ordered Wirecard’s UK subsidiary Wirecard Card Solutions (WCS) to stop all activities. This came just 24 hours after its German parent company filing for insolvency as the weight of an accounting scandal engulfed the DAX-listed firm.

Wirecard can now resume electronic money and payment services to its UK customers including the likes of ANNA Money, Pockit and Soldo.

The FCA said in a statement late last night: "We are now in a position to allow Wirecard to resume regulated activity and on 29 June 2020, the FCA provided written consent to Wirecard to resume issuing e-money and providing payment services. We continue to monitor Wirecard’s activities closely and certain requirements continue to remain in force. These should not, however, affect the services Wirecard provides to its customers. This means customers can now or very shortly use their cards as necessary."

"This is great news," said ANNA Money in a blog post that went on to say when reopening accounts turning on a big batch of payments at once will "cause a technical freeze on Wirecard’s side", meaning they will have review each operation manually which may mean further delays to accessing to money. 

 

 

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