FCA Priorities for Payment Firms: 2025 and Beyond

The Financial Conduct Authority (FCA) outlines its priorities for payment firms operating under Payment Services Regulations 2017 and Electronic Money Regulations 2011. The communication, addressed to Chief Executive Officers, emphasizes effective competition and innovation, maintenance of financial system integrity, and the safeguarding of customer funds. The FCA highlights the importance of adhering to the Consumer Duty and addressing weaknesses in governance, risk management, and financial crime controls. Firms are expected to have effective wind-down plans and robust systems for operational resilience, ensuring they meet regulatory capital requirements. The letter encourages engagement with the FCA on future policy development, especially regarding Open Banking and Strong Customer Authentication. Ultimately, the FCA seeks to foster a trusted and competitive payments ecosystem that benefits both consumers and the broader UK economy.