The UK’s Financial Conduct Authority has issued new guidance to payment providers and e-money companies on safeguarding customers’ funds; the regulator said the measures were in response to the coronavirus and meant to protect the users of payment cards and digital apps; the new rules force payment providers and e-money issuers to keep up-to-date records of all funds received and maintain a clearly separate safeguarding account for customer money; they were also directed to review third party providers as often as appropriate and be more careful selecting who they work with; “The sector has reached the scale where more regulation is required,” said Matt Hopkins, of the global bank team at advisory firm BDO, to the FT. “This is the end of light-touch regulation of e-money and payment institutions.” Financial Times.
