FCA has imposed a number of requirements on Wirecard, an authorised EMI which is also subject to the PSRs.
As a result of ongoing investigations and actions in Germany involving Wirecard’s parent company, FCA first imposed requirements on 19 June, and on 26 June added the requirements that Wirecard must not:
- dispose of any assets or funds; or
- carry on any regulated activities, and must state on its website that it is no longer permitted to conduct any regulated activities.
FCA says it immediately took action to ensure the UK entity did not pay out or reduce any money held for customers except on their instructions, as soon as the news that €1.9 bn was missing from the German entity’s accounts. FCA notes that customers should contact the firm if they have money with it, or gave money to it through an agent. It reminds customers that the FSCS does not cover EMIs or payment services, but there are safeguarding measures in place under the relevant regimes that are intended to protect and return customer money in the event of a firm failing.
FCA also wants any firms that outsource any operational functions to Wirecard to contact it.