FCA: e-money companies are not banks

FCA warns UK fintechs against comparing themselves to banks

Financial regulator is concerned some companies are ‘misleading’ customers about the risks of e-money accounts

Many fintech start-ups have been unfairly comparing themselves to banks and failing to warn consumers about the risks of signing up to their services, according to the UK’s financial regulator.

The Financial Conduct Authority on Tuesday ordered more than 300 companies to write to their customers within six weeks to remind them of the risks of storing their cash in accounts that are not covered by the Financial Services Compensation Scheme.

It also warned that some companies were “misleading” customers about the extent to which some of their products are regulated.

https://amp.ft.com/content/23a3bc74-a742-451a-9c1e-b17ee1819360

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I always look too see if they are actually covered and part of the scheme. It can sometimes take an age to find that information.

They bang on about how good every feature is blah blah then 8 minutes later, oh that’s no good, not covered.

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