The Financial Conduct Authority has set its sights on tightening up regulation of the e-money sector.
In a statement, the FCA said it is consulting on rules and guidance to improve conduct standards and communications in the payment services and e-money sectors.
Its new Consultation Paper states it is looking to cover wider categories of businesses that it regulates, including businesses authorised or registered under the Payment Services Regulations or the Electronic Money Regulations.
This paper includes broader types of activities, such as 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).
The regulator has also proposed new guidance to help ensure that firms do not ‘mislead consumers’ when they are advertising payment services that involve a currency conversion.
Its new measures aim to help customers better understand the regulatory standards and will make it easier for the FCA to intervene when it sees harm.
The FCA’s disciplinary powers under FSMA would apply to breaches of the proposed new rules, including those relating to marketing and communications.
Christopher Woolard, executive director of strategy and competition at the FCA said: “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.”
The FCA is now seeking comments on the proposals set out in this Consultation paper, which closes on the 1 November 2018.
The Financial Conduct Authority recently proposed tough new regulations regarding peer-to-peer (P2P) lending platforms. With ‘growing complexity and poor practices’ since it first authorised trading in the market 18 months ago, the regulator has now proposed a number of changes for loan-based crowdfunding platforms
Copyright © 2018 RegTech Analyst
Copyright © 2018 RegTech Analyst
