Trends
FCA lifts year-long ban, unlocking Modulr’s partner expansion
OUR TAKEModulr, the London-based electronic money institution, has finally had its restrictions lifted by the FCA. Last year, Ant Group also faced similar regulatory issues, but they regained trust through a series of reforms and transparency measures. Modulr has also put in a lot of effort, upgradi…
Headline
OUR TAKEModulr, the London-based electronic money institution, has finally had its restrictions lifted by the FCA. Last year, Ant Group also faced similar regulatory issues, but they regained trust through a series of reforms and transparency measures. Modulr has also put in a…
Context
OUR TAKE Modulr, the London-based electronic money institution, has finally had its restrictions lifted by the FCA. Last year, Ant Group also faced similar regulatory issues, but they regained trust through a series of reforms and transparency measures. Modulr has also put in a lot of effort, upgrading their partner onboarding procedures and providing prior notice to the FCA. Now they can expand their partner network and offer more diverse and convenient electronic payment services. However, I hope Modulr can continue to maintain high standards and avoid causing any more concerns for consumers. –Miurio huang, BTW reporter The UK’s Financial Conduct Authority (FCA) has officially lifted the temporary restrictions it had imposed on Modulr , a London-based electronic money institution (EMI). Last October, the FCA had ordered Modulr to halt onboarding new Agent and Distributor (A&D) partners. This restriction was part of the regulator’s response to concerns about Modulr’s processes for integrating and overseeing its partners.
Evidence
Pending intelligence enrichment.
Analysis
Following a thorough review and enhancement of its A&D partner onboarding procedures, Modulr has now received the FCA’s approval to resume the onboarding process. The company has made several improvements to its partner oversight systems and conducted extensive internal and external testing to ensure compliance with regulatory standards. As part of the new agreement, Modulr is required to provide the FCA with at least 10 business days’ prior written notice before onboarding any new A&D partners. This change allows Modulr to expand its network of partners who issue electronic money on its behalf, thereby broadening its payment services’ reach and capabilities. The FCA’s decision marks a significant milestone for Modulr, which had been restricted from growing its partner network for nearly a year. Also read: UK regulators to scrutinise Big Tech’s digital wallets Also read: UK watchdogs probe competitiveness of big tech’s digital wallets
Key Points
- The UK’s Financial Conduct Authority (FCA) has officially lifted the temporary restrictions it had imposed on Modulr, a London-based electronic money institution (EMI).
- The lifting of the FCA’s restrictions on Modulr highlights the regulatory dynamics and operational challenges faced by electronic money institutions.
Actions
Pending intelligence enrichment.
