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Payments, e-money firms see new UK rules to protect customer funds

By Phoebe Seers ( August 7, 2025, 08:51 GMT | Insight) -- The UK’s financial markets watchdog will introduce new rules on payments and e-money firms aimed at protecting customers when a firm fails. The Financial Conduct Authority said the rules were needed since insolvent firms have on average, a 65 percent shortfall between funds owed to clients and funds that have been safeguarded. Money held by e-money companies like PayPal, Revolut and Wise is not directly protected by the statutory compensation program, so firms must safeguard money — either by segregating it or with insurance. The UK’s financial markets watchdog will introduce new rules on payments firms aimed at protecting customers when a firm fails. The Financial Conduct Authority said the rules were necessary since payments firms that become insolvent have on average, a 65 percent shortfall between the funds owed to clients and the funds that have been safeguarded....

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