The Financial Conduct Authority (FCA) has published Policy Statement PS25/12, introducing new requirements to strengthen the safeguarding of customer funds held by UK payments and e-money institutions. Effective from 7 May 2026, these rules will require daily internal reconciliations, annual external audits, and the use of segregated trust accounts for client money. The FCA estimates that around £6 billion in customer funds are currently held by payment firms, and the enhanced measures are intended to reduce risks of delays or losses if a firm becomes insolvent. [Source: FCA]
The changes follow an earlier consultation (CP24/20) and are designed to improve consumer protection across the sector. All authorised payment institutions, authorised e-money institutions, small e-money institutions, and credit unions issuing e-money in the UK will be subject to the new regime. Small payment institutions retain the option to comply voluntarily with the safeguarding requirements.
The regulatory update is being introduced in two stages:
- Supplementary Regime (Interim Rules): Comes into effect 7 May 2026, introducing transitional safeguards for all relevant firms.
- Post-Repeal Regime (End-state Rules): Full requirements following repeal of current provisions, with details pending final implementation guidance.
The FCA highlights that these changes will mitigate shortfalls in client funds and facilitate faster returns to customers should a firm fail. Regular reconciliations and segregated trust accounts are expected to make customer money more secure and accessible during firm resolution procedures.
| Key Change | Effective Date | Who Is Affected? |
|---|---|---|
| Daily internal reconciliations | 7 May 2026 | All payment & e-money firms |
| Annual external audits | 7 May 2026 | All payment & e-money firms |
| Separate trust accounts | 7 May 2026 | All payment & e-money firms |
For further reading on related developments and practical guidance, see:
- UK watchdogs tighten their grip on Apple Pay & Google Pay
- Using e-wallets to bet online in the UK
- Easier to add cards to Apple Wallet
- Trustly withdrawal method guide
- Common issues with casino withdrawals
For more information about safe withdrawals and FCA regulation, visit our homepage or see the full policy statement from the FCA.
