UK Financial Regulator Strengthens Payment Firm Customer Protections

Teh United Kingdom’s financial Conduct Authority introduced new protections for payment firms‘ customers.

The changes, which will take effect in May 2026, are designed to improve how payment companies safeguard customer money, according to a press release issued on Thursday (Aug. 7) here.

“Safeguarding means that customer money must be kept separate from the firm’s own money so that it is available to be returned if the firm fails,” the release said. “after talking with the industry, the FCA confirmed the new rules will start in 9 months, giving companies time to prepare. The FCA also made changes to make the rules fairer for smaller firms,like removing the audit requirement if a firm holds less than £100,000 (about $134,000) in customer funds.”

These rules will give consumers more protection. If a payment or e-money company fails, customers are more likely to get a full refund quickly, according to the release.