The FCA issued written approval on 29 June 2020 to enable Wirecard to resume e-money issuance and payment services. On 30 June 2020, the business cap will increase at 00:01.
Such provisions mainly serve to secure customers’ electronic money funds in secured accounts. It also impeded the receipt and purchase by customers with these assets. Through accepting FCA ‘s permission, Wirecard is now free to restart its customers online money and payment systems, or use them very quickly, as planned.
On 26 June 2020, the FCA imposed a number of requirements on Wirecard, including that the company must not dispose of any assets or funds, that it must not carry out any regulated activities and that it must make a statement on its website that it is no longer permitted to carry out any regulated activities. This follows on from the ongoing events in Germany concerning Wirecard’s parent company, Wirecard AG. Wirecard AG is not supervised by the FCA.
The FCA has worked closely with Wirecard and other authorities to ensure that the firm has been able to meet the conditions necessary to remove certain requirements that we have imposed on it. We know that some customers have had difficulties over the weekend, but the steps we’ve taken have been the right ones to protect everyone’s money. Our primary objective has always been to protect the interests and money of consumers using Wirecard. Over the weekend, we have worked with the Department of Work and Pensions (DWP), Her Majesty’s Treasury (HMT) and the Home Office to assist any customer in financial distress and to provide support on our website.
We are now in a position to allow Wirecard to resume regulated activities and, on 29 June 2020, the FCA provided Wirecard with written consent to resume issuing e-money and providing payment services. We continue to monitor Wirecard ‘s activities closely and certain requirements remain in place. However, these should not affect the services provided by Wirecard to its customers. This means that customers can use their cards as necessary now or very soon.
There are still certain requirements in place that have been imposed on Wirecard ‘s authorisation. These requirements include restrictions on where customer money can be held and restrictions on its ability to transfer its own assets.
The FCA continues to work with the firm to advance these issues.
Customers should be able to use their cards as usual now or very soon. If they are still experiencing difficulties, customers should contact their card provider directly and may do so by using the contact details on their website.
Customers can also contact their Consumer Helpline for further information.
No, no. The Financial Services Compensation Scheme (FSCS) applies only to certain types of activity which do not include the provision of electronic money or payment services.
Under the EMRs and PSRs, there are rules on how to protect customer money and these requirements are known as ‘safeguarding.’