Fraud fears spark FCA warning to finance firms: Look after your customers or face action under new rules
The FCA is bringing in new regulations to create a higher level of consumer protection in retail financial services The finance industry regulator has warned financial technology firms they need a “significant shift in culture and behaviour” to avoid a clampdown under tough new rules. said it continued to see “poor financial crime controls in some payments and e-money firms”, warning that this left both “the firm and its customers being targeted by criminals”.
Firms are also freezing a disproportionate number of customer accounts for too long, without adequate explanation, the FCA said. The FCA wants to create a higher level of consumer protection in retail financial services, and describes the new regulations as a cornerstone of its three-year strategy to set higher standards, and reduce and prevent serious harm to consumers.– including firms providing information that was misleadingly presented or difficult to understand.