FCA consults on general standards and communication rules for payment services and e-money

The FCA has published a consultation paper on rules and guidance to improve conduct and communication in the payment services and e-money sectors.

Currently, payment service providers and e-money issuers are subject to different regulatory requirements, as both FSMA and non-FSMA firms operate in these sectors. The FCA has recognised that this creates a mismatch in conduct standards and communication requirements for firms and that such mismatch should be addressed. In addition, the FCA is concerned the some firms’ communication practices, including misleading advertising and marketing of services, is harmful to consumers.

To address its concerns, the FCA proposes to –

  • extend the application of the Principles for Business so that they apply to payment services and the issuance of e-money;
  • extend the rules and guidance concerning communication with retail banking customers to communications with payment services and e-money customers; and
  • introduce new rules and guidance on currency exchange transfer services to payment services and e-money involving a currency conversion.

The deadline for comments is 1 November 2018.