For years, the UK charted a lonely but pragmatic course with its interpretation that deliverable FX forwards are not investment instruments. UK payment and e-money institutions can offer such products without requiring authorisation under the Financial Services and Markets Act 2000 (FSMA) while counterparts elsewhere in the EEA had to be regulated. The implementation of MiFID II in January 2018 will, among other things, confirm the UK’s position but the new definition is a little tighter than what we are used to in the UK and payment and e-money institutions must consider whether they want to remain unregulated.
The regulatory landscape is facing significant change over the incoming months with the implementation of four major European initiatives (impacting the payment services, anti-money laundering, investment and data protection regimes) creating a whirlwind of change for compliance professionals and their regulated firms. And that’s aside from the changes and uncertainty flowing from Brexit! This article sets out the key dates that should be marked in your diary so that you can draw up your Second Payment Services Directive (PSD2) - readiness plan.
The technical glitch that left thousands of customers of high profile fintech start-ups without access to their money last month should act as a major wake up call to payment services providers across the UK.
Payment institutions, banks and some e-money institutions have just received an email from the Financial Conduct Authority (FCA) issuing a stark warning regarding three main areas: