The FCA has said that e-money companies in the UK will need to undertake a ‘significant shift in culture and behaviour’ to comply with new Consumer Duty rules.
The Duty will come into law in July and will require banks and other financial institutions to improve their consumer care and protection efforts.
According to Finextra, in a recent Dear CEO letter addressed to payment institutions, electronic money institutions and registered account information service providers, Matthew Long – FCA director of digital assets – called for the change.
He said, “We recognise that the implementation of the Duty comes at a challenging time. However, we believe that embedding the Duty effectively will help payments firms continue to build trust amongst consumers in using the expanding range of products and services and enable the sector to continue to grow in a way that delivers consistently good outcomes for customers.”
The FCA recently warned some businesses are falling behind in their preparation for the new regime and are failing to address a shortfall in their technology resources.
Long added, “Whilst we appreciate that the facts of these can be hard to establish, firms should ensure that their treatment of customers who feel themselves to be victims and are distressed is not unduly harsh or unsupportive.”
The FCA recently published a discussion paper to seek perspectives on future sustainable governance.
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