Payments regulation 2023: Safeguarding best practices and regulatory updates

In March, the FCA issued a Dear CEO letter to all payments and e-money firms. Similar to a letter published by the Central Bank of Ireland (CBI) in January, it highlighted three priorities:

  1. Ensure customers’ money is safe
  2. Ensure operations don’t compromise the integrity of the wider financial systems
  3. Meet customer needs with high-quality products and services, competition, innovation, and robust implementation of Consumer Duty rules

The letter followed the FCA’s sixth edition of the Financial Services Regulatory Initiatives Grid, which was published in February.

The grid outlined a consultation on strengthening safeguarding requirements for payment and e-money institutions using enhanced rule-making powers given to the FCA as part of the Future Regulatory Framework Review.

Due to be published H1 2023, the final rules and feedback are expected by early 2024.

Payments regulation 2023: Safeguarding best practices and regulatory updates

While safeguarding measures have been in place since 2011, the latest developments show just how seriously the UK regulator is taking safeguarding as the sector undergoes huge growth and change.

To help you stay compliant in 2023, we guide you through the latest updates and the essentials of safeguarding payments and e-money firms. The paper outlines:

  • What is safeguarding?
  • Safeguarding best practices
  • What is involved in annual safeguarding audits?
  • Reconciliation requirements for safeguarding
  • How AutoRek’s first-to-market safeguarding solution works to ensure accuracy and timeliness for the segregation of funds and reports

The final section covers other regulatory developments payments organisations need to know about.

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