UK special administration regime for payment and electronic money institutions: triggers, procedure, FCA powers, asset pools, bar dates and transfers, and 2026 safeguarding reforms introducing statutory trust over customer funds

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The Financial Conduct Authority (FCA) has released policy statement PS25/12, setting out definitive, final rules to bolster the safeguarding regime for payment and e-money firms. Flowing from consultation paper CP24/20, these reforms seek to cut deficits in customer funds and secure swifter, more complete returns should a firm collapse. The FCA has additionally issued draft changes to ‘Payment Services and Electronic Money—Our Approach’, which will be revised to mirror the new framework. The new rules, together with the corresponding updates to the Approach Document, come into force on 7 May 2026. (See: LNB News 07/08/2025 11 and News Analysis: FCA’s broad proposals aim to protect customer funds). Ipagoo decided that the Electronic Money Regulations 2011 (EMRs 2011), SI 2011/99 do not impose a statutory trust over relevant funds; rather, they instead confer a distinctive priority interest for customers upon insolvency. The Allied Wallet case similarly applied these principles to safeguarding under the Payment Services Regulations 2017 (PSRs 2017), SI 2017/752. According to the FCA, this stance breeds uncertainty because, unlike a trust, the legal effects of the special status under the PSRs 2017, SI 2017/752—EMRs 2011, SI 2011/99 are not sufficiently clear. The practical consequences also remain...

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Web page updated on 22/05/2026

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