Copy of UK FCA letter on consumer duty to emoney and payments firms dated 21 February 2023 here
Implementing the UK Consumer Duty at #Emoney and #Payments firms.
UK Financial Conduct Authority issues letter to #fintech emoney and payments firms today (21 February 2023)
➡️ We expect the Consumer Duty to be a top priority for you personally. We want good outcomes for customers to be at the heart of firms’ strategies and business objectives, and leaders have a key role to play here. We expect firms’ Boards and senior management to embed interests of customers into the culture and purpose of the firm.
➡️ The Duty applies to products and services offered to retail customers, including to micro-enterprises and small charities with an annual turnover of less than £1 million, and to all firms who determine or have a material influence over consumer outcomes - not just those with a direct customer relationship. It is important that you consider how the Duty applies to your firm in light of its business model, customer characteristics and influence over consumer outcomes. We’ve set out a some more information and examples about how the Duty applies to payments firms in Annex 1 to this letter.
"Annex 1 - How the Duty applies to payments firms
The Duty will require firms to act to deliver good outcomes for customers (including those in vulnerable circumstances). This reflects the positive and proactive expectation we have of firm conduct, and our desire for firms to think more about consumer outcomes and place consumers’ interests at the heart of their activities.
The payments portfolio includes firms with a broad range of business models performing a number of activities that impact almost all consumers. Firms’ target markets range from large corporates to individuals, including diaspora communities and vulnerable consumers, some of which are otherwise unable to access financial services. We expect the focus on acting to deliver good outcomes to be at the centre of payments firms strategy and business objectives.
Where an authorised or registered firm, for example a money remitter or electronic money issuer, provides payment services through an agent or, in the case of an electronic money issuer, distributes or redeems electronic money through an agent or distributor, the authorised or registered firm is responsible for ensuring that the third party complies with the Duty."
Implementing the UK Consumer Duty at #Emoney and #Payments firms.
UK Financial Conduct Authority issues letter to #fintech emoney and payments firms today (21 February 2023)
➡️ We expect the Consumer Duty to be a top priority for you personally. We want good outcomes for customers to be at the heart of firms’ strategies and business objectives, and leaders have a key role to play here. We expect firms’ Boards and senior management to embed interests of customers into the culture and purpose of the firm.
➡️ The Duty applies to products and services offered to retail customers, including to micro-enterprises and small charities with an annual turnover of less than £1 million, and to all firms who determine or have a material influence over consumer outcomes - not just those with a direct customer relationship. It is important that you consider how the Duty applies to your firm in light of its business model, customer characteristics and influence over consumer outcomes. We’ve set out a some more information and examples about how the Duty applies to payments firms in Annex 1 to this letter.
"Annex 1 - How the Duty applies to payments firms
The Duty will require firms to act to deliver good outcomes for customers (including those in vulnerable circumstances). This reflects the positive and proactive expectation we have of firm conduct, and our desire for firms to think more about consumer outcomes and place consumers’ interests at the heart of their activities.
The payments portfolio includes firms with a broad range of business models performing a number of activities that impact almost all consumers. Firms’ target markets range from large corporates to individuals, including diaspora communities and vulnerable consumers, some of which are otherwise unable to access financial services. We expect the focus on acting to deliver good outcomes to be at the centre of payments firms strategy and business objectives.
Where an authorised or registered firm, for example a money remitter or electronic money issuer, provides payment services through an agent or, in the case of an electronic money issuer, distributes or redeems electronic money through an agent or distributor, the authorised or registered firm is responsible for ensuring that the third party complies with the Duty."