Impact of the proposed changes on the PSR and EMR Safeguarding rules
Published on: 07/01/2025 00:00
The FCA’s recent Safeguarding Consultation Paper materially enhances the requirements on payment services (PSPs) and e-money institutions (EMIs), moving them closer to the full CASS framework. In the consultation, the FCA has recognised the weaknesses in the current safeguarding arrangements and in key areas such as the identification of ‘relevant funds’; reconciliation procedures; and the segregation of funds. These are key for consumer protection. The consultation runs until 17 December 2024 and the FCA plans to introduce the changes in the first half of 2025.
