UK watchdog says Wirecard making progress on addressing concerns By Reuters

© Reuters. FILE PHOTO: The headquarters of Wirecard AG is seen in Aschheim near Munich

By Huw Jones and Iain Withers

LONDON (Reuters) – The Financial Conduct Authority said on Monday Wirecard was addressing the British watchdog’s concerns but its restrictions on the collapsed German payments company’s services would remain for now.

Several UK fintech firms have been forced to suspend services following the FCA’s restrictions on Wirecard, leaving hundreds of thousands of accounts blocked.

“We cannot lift the restrictions without reassuring ourselves that the firm has been able to satisfy all our concerns for example that all clients’ money is safe. We hope to be able to issue an update soon,” the FCA said in a statement on Monday.

The FCA its teams have been working with Wirecard, and other international and UK authorities, over the weekend.

“We have seen good progress by the firm in meeting the conditions we set,” the watchdog said.

Subprime lender Morses Club said on Monday it had had to freeze online accounts provided by its digital service U Account.

Industry forum the Emerging Payments Association (EPA) said the FCA freeze on Wirecard in Britain should be lifted as soon as possible as moving to alternative firms takes months and with significant costs.

“We predict dozens of corporate failures, hundreds of job losses and significant reductions in tax payments, unless it is removed right away,” EPA said in a letter to the FCA.

“Unless the suspension is reversed soon, and within the next 24 hours, we predict significant and irreparable damage to the UK’s reputation for having a thriving, balanced fintech industry supported by an understanding and enabling regulator.”

Martin Lewis, founder of consumer website, said there is a reasonable expectation that the hundreds of thousands of consumers affected will get access to their money again by Wednesday or Thursday.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Be the first to comment

Leave a Reply

Your email address will not be published.