FCA CP24/20 Consultation Paper

FCA CP24/20 Consultation Paper – “Changes to the safeguarding regime for payments and e-money firms”

After much anticipation, the FCA has released the long-awaited CP24/20 consultation paper on changes to the Safeguarding Regime – “Changes to the safeguarding regime for payments and e-money firms”. Click here to read the full consultation.

As widely predicted, the regulator has taken the opportunity to align the safeguarding regulations to the client assets regime (CASS) specifically under CASS 15, to replace the existing legislation within the PSRs and EMRs. Notable headline areas include segregation methodology, trust principles, reporting, and post-insolvency arrangements. The Safeguarding regulations will be formally adopted into the CASS & SUP regimes.

The proposed rules within the new CASS 15 chapter focus upon a direct alignment of CASS regulation and methodology particularly within safeguarding reconciliations and individual safeguarding balances. The proposed changes will also require payment and e-money firms to perform and maintain a rule and obligation mapping framework to manage and assess risk.

If you are an authorised payment institution, e-money institution, or a credit union that issues e-money in the United Kingdom under the PSRs and EMRs, contact our team to learn more about how Grath can help you manage regulatory compliance, mitigate risk and automate Safeguarding reconciliations.