UK Watchdog to Tighten Rules for Payment Firms From May 2026

UK watchdog to tighten rules for payment firms from May 2026

LONDON :Britain's Financial Conduct Authority (FCA) said on Thursday it would roll out stricter rules for electronic payment firms from May 2026 to better safeguard customers' money.The regulator, which first laid out proposed reforms for payment firms in September, said companies would be required to keep cu

Major rule change for firms like PayPal to protect millions of customers’ cash

MILLIONS of people using payment firms will see their cash better protected due to a major rule change.The Financial Conduct Authority (FCA) is set to

FCA Sets Out Changes to Payment Safeguarding Rules

Safeguarding means that customer money must be kept separate from the firm’s own money so that it is available to be returned if the firm fails. Following constructive engagement with industry, the FCA has confirmed that the new rules will kick in after 9 months, giving industry time to prepare. It has also made changes to ensure that rules are proportionate for smaller firms,

FCA introduces new rules to safeguard client funds

The UK’s Financial Conduct Authority (FCA) has announced sweeping new rules aimed at tightening consumer protection across e-money and payment institutions, following damning figures that show customers lost an average of 65% of their funds when firms collapsed between Q1 2018 and Q2 2023. According to Finextra, the new rules, which will take effect in May 2026 after a nine-month grace period, are designed to ensure that customer funds are prope…

FCA cracks down on payment firms after fund losses

The UK’s Financial Conduct Authority (FCA) has introduced new rules designed to improve consumer protection in the event of payment and e-money firm insolvencies, following evidence that past failures have left serious gaps in customer safeguards. According to Finextra, between Q1 2018 and Q2 2023, the FCA found that payment firms entering insolvency held on average just 35% of the money owed to customers—leaving a staggering 65% shortfall. The …

FCA tightens rules for payment firms - Credit Connect

The Financial Conduct Authority (FCA) has announced that stricter regulations for electronic payment firms will come into force in May 2026. The new rules say companies must separate customer funds from their own, ensuring refunds in case of firm failures. The City watchdog says firms will face annual audits by qualified auditors, monthly reporting, and daily checks on safeguarded funds. The rules will apply to payment institutions, e-money inst…