UK regulator wants end to payments conduct unbecoming
The UK’s Financial Conduct Authority (FCA) is in a no-nonsense mood again as it wants to improve conduct standards and communications in the payment services and e-money sectors.
With a tutting sound and a despairing look, the FCA is consulting on rules and guidance to get paytech in a proud and potent place.
Christopher Woolard, FCA executive director of strategy and competition, says: “This is a measured intervention – for many it will simply reflect current good practice and ensure that they are subject to the fundamental obligations that we expect of regulated firms.
“For some, however, it should be a clear signal that through our rules, supervisory and enforcement action, we will not tolerate customers being misled or being treated unfairly.”
He didn’t say “watch it sunshine”. But you get the idea.
Onto the dry stuff.
The consultation paper proposes to extend the application of the principles for businesses and certain specific rules about promotions and communications so that they cover wider categories of businesses that the FCA regulates (including businesses authorised or registered under the Payment Services Regulations or the Electronic Money Regulations).
This includes broader types of activities (including the provision of payment services and the issuing of electronic money where they are not connected to an activity regulated under the Financial Services and Markets Act [FSMA]).
According to the FCA, these measures should help customers to better understand the standards it expects of firms in the market, and will make it easier for the FCA to intervene when it sees harm.
Told you it was dry.
You can give feedback here. Comments close on 1 November 2018.
Incidentally, on 27 July, the FCA was rocking the tough guy look as it clamps down on loan-based crowdfunding platforms.