FCA wants payment firms’ advice on how to best protect their customers

The Financial Conduct Authority (FCA) has made another initiative to protect financial customers, this time by asking payment firms for their insights.

The regulator has previously introduced measures for the insurance industry to ensure customers are not poorly affected by the coronavirus pandemic.

The new consultation is looking for ways to improve the guidance for payments firms to strengthen the way in which they look after customers’ money.

While the call for insights is part of the FCA’s ongoing work to ensure that payments firms are adequately protecting customer funds, it has been speeded up because to COVID-19.

Payments firms bring financial parties together to deliver a simple payment experience for business and their customers by processing payments quickly and efficiently, and offer services including money remittance.

The guidance will provide additional direction for firms to meet their safeguarding requirements and it outlines the FCA’s expectation of firms to put in place more robust plans for winding down, so that customer funds are returned in a timely manner.

The consultation, which will apply to all payments firms, will last for two weeks and closes on 5 June 2020. If confirmed, the final guidance will be published at the end of June.

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