Don't Claim To Be Banks, Watchdog Warns E-Money Lenders

Law360, London (May 19, 2021, 12:05 PM BST) -- Britain's finance watchdog has warned payment companies and e-money firms that they could be misleading customers by comparing themselves to traditional banks despite not being able to offer the same degree of protection for clients' money.

The Financial Conduct Authority said in a "Dear CEO" letter to electronic money firms on Tuesday that such payment companies — which include firms such as Wise, formerly known as TransferWise — that allow money to be stored online but are not officially banks could be misleading their customers.

"We are concerned that many e-money firms compare their services to traditional bank accounts or hold...

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