Articles by author
The FCA’s safeguarding reforms for payments and e-money firms: an update
The Financial Conduct Authority (FCA) believes clients of payments and e-money firms are exposed to unacceptable risks due to poor safeguarding practices across the sector. The FCA has now published final rules and guidance to address these in PS25/12. The interim-state rules have been modified in several respects, including removing the need for reconciliations on non-working days and exempting firms who have not safeguarded relevant funds from the audit requirement. The implementation period for these changes has been extended from six to nine months. The end-state rules, which included a statutory trust and abolition of the so-called “D+1 rule”, have been paused due to stakeholder concerns.
25 OCT 2025Changing of the (safe)guard: the FCA’s proposals for payments and e-money firms
Payments and e-money firms are subject to a safeguarding regime designed to protect client funds. However, the Financial Conduct Authority (FCA) does not believe the regime is working. The proposals in CP24/20 are intended to address this problem. Interim-state rules will reinforce existing requirements, including by monthly regulatory returns and annual audits. End-state rules will move to a trust arrangement modelled on the regime for investment business, among other changes. As consulted on, the FCA’s proposals will place a greater compliance burden on payments and e-money firms. This may lead to increased enforcement action and consolidation within the sector.
6 MAR 2025Lost in the labyrinth: the Court of Appeal in KVB Consultants
The decision of the Court of Appeal in KVB Consultants Ltd & Ors v Jacob Hopkins McKenzie Ltd & Ors [2024] EWCA Civ 765 has important implications for anyone who deals with, appoints or acts as an appointed representative (AR). It applied a number of principles from existing case law but reached a surprising conclusion regarding how a principal can limit the responsibility it takes for its AR.
30 SEP 2024
