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:
1. Misleading customers when showing the interbank rate in currency converters
2. Making claims about how much money can be saved
3. How they describe their authorisation status
The FCA is concerned that some firms use currency converter tools on their websites that show the interbank rate, without explaining that this is not the rate they are offering. They are concerned that this gives consumers the impression that the superior rate is available to them.
Firms are advised to “review their marketing materials to ensure they are not misleading” since the FCA is likely to check websites and promotional material and will take supervisory and/or FCA enforcement action against firms that are not “acting in accordance with our expectations”.
If you require any advice or assistance in this matter or any other regulatory and compliance related issue, please do not hesitate to contact me or one of my colleagues.