UK watchdog to tighten rules for payment firms from May 2026

The London Financial Conduct (Reuters) -it will offer tougher bases for electronic payment companies from May 2026 to better improve customer money.

The organizer, which was first placed for the proposed repairs of the payment companies in September, said that companies will be required to keep customer money separate from their own money, so that they can be returned if the company fails.

The payment sector is exposed to more scrutiny as more consumers have become at risk of worse. Between 2017 and 2022, the use of current accounts with money and online payment institutions – instead of traditional banks – increased to five times.

Under the most strict rules, the larger payment companies are subject to monthly reports and annual auditing, and they will be asked to make daily checks to ensure the protection of the appropriate amount of money to protect customers.

The organizer said that the rules will be applied to payment institutions, e -institutions (EMIS) and credit federations that issue electronic money.

Emis London has been overwhelmed over the past decade, and has benefited from a lighter organizational burden compared to banks.

Last month, the Argentex Foreign Labor, an electronic money institution (EMI), has decreased since 2018, in a special management after undergoing market fluctuations after a decrease in the company’s liquidity site.

FCA said that failed payment companies have a average decrease in 65 % of their customers ’money over the period of five years until mid -2013.

“People rely on payment companies to help manage their financial lives. But often, when these companies fail, their customers are left from their pocket,” said Matthew Long, FCA.

“We will closely monitor to see if companies seize the opportunity and make effective improvements that their customers really deserve – this will help us determine whether any additional tightening of the rules is necessary.”

The United Kingdom, a pressure group of the financial industry, said it is important to evaluate the new protection rules for its influence and effectiveness before making any other changes.

“We support a strong and effective protection system that protects customers without submitting unrealistic demands to companies, especially smaller companies,” said a spokesman.

“Getting the right balance means the presence of practical, proportional and international competitive rules.”

(Participated in the reports of iain withers and Kirstin Ridley, editing by Ed Osmond)