The UK's Financial Conduct Authority (FCA) has outlined their priorities for payments firms emphasising the importance of innovation, competition, and security in the payments ecosystem, aligning with the Government's National Payments Vision.
The FCA's Dear CEO letter to firms in their payments portfolio sets out three key outcomes for firms:
- Effective competition and innovation: Firms should meet customers' needs, characteristics, and objectives. The FCA supports innovation through various initiatives and expects firms to implement the Consumer Duty effectively.
- Financial system integrity: Firms should not compromise the integrity of the financial system. The FCA's letter focuses on reducing financial crime and enhancing operational resilience.
- Customer money safety: Firms must ensure the safety of customers' money. This includes proper safeguarding, effective prudential risk management, and maintaining actionable wind-down plans.
The FCA also highlights the importance of governance, oversight, and leadership in achieving these outcomes. Firms are expected to have robust governance arrangements, effective oversight of agents and distributors, and compliance with regulatory requirements. The letter concludes by encouraging firms to engage with the FCA on future policy development and to prepare for regulatory changes. The FCA will continue to monitor and support firms to ensure they meet the outlined outcomes.
Read the Dear CEO letter in full: payments-portfolio-letter-2025.pdf (SECURED)
