On 18 May 2021, the FCA published a “Dear CEO Letter” addressed to e-money firms (referring presumably to e-money institutions). In the letter, the FCA expressed its concerns that many “e-money firms” are not adequately disclosing the differences in protections between their services and traditional banking, and, in particular, that the Financial Services Compensation Scheme (FSCS) protection does not apply. The FCA therefore asked them to write to their customers within six weeks of the date of the letter to remind them of how their money is protected through safeguarding and that FSCS protection does not apply.
For further information, the full FCA’s “Dear CEO Letter” can be accessed here: