Coronavirus and safeguarding customers’ funds: proposed guidance for payment firms

On the 22^nd May, the FCA released a consultation, outlining additional temporary guidance to support payment firms and their prudential risk management. Given the unprecedented circumstances of the COVID-19 pandemic, they also included arrangements in safeguarding customers funds.

The FCA have also noted that they have found evidence that some firms have not implemented the Electronic Money Regulations 2011 or Payment Services Regulations 2017 as expected, prompting the release of the consultation.

In their guidance, the FCA asks firms to consider:

1. ‘Do you agree that we should provide additional guidance on safeguarding, managing prudential risk, and wind-down plans? If not, please explain why.’
2. ‘Do you agree with our proposed guidance on safeguarding? If not, please explain why.’
3. ‘Do you agree with our proposed guidance on managing prudential risk? If not, please explain why.’
4. ‘Do you agree with our proposed guidance on wind-down plans? If not, please explain why.’

The FCA has invited stakeholders to comment on its proposed guidance by 5 June 2020. Ultimately, the FCA plans to incorporate this guidance into its Payment Services Approach Document, which contains its main guidance for payments firms in these areas. 

To review the guidance in full, click here.

If you are concerned about your firms’ safeguarding and prudential risk management function, FourthLine can help, providing you with talent and learning solutions to fit your company requirements.

Schedule a call with Dan today to explore how FourthLine can support your business.