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FCA portfolio letter: UK payments firms’ compliance priorities on Consumer Duty, FX pricing transparency, APP fraud, operational resilience, safeguarding, prudential capital and wind‑down planning

Published on: 31 March 2025

Published by a Law360 reporter
Legal News
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Article summary

The portfolio letter

This portfolio letter builds on an earlier FCA letter issued on 16 March 2023. That communication to payments firms outlined the steps the FCA expected firms to take to deliver three outcomes it had set for the sector, together with three cost-cutting priorities:

  • Safeguard customers’ money
  • Ensure firms do not compromise the integrity of the financial system
  • Meet customers’ needs through high-quality products and services by implementing the Consumer Duty

The FCA reiterated that firms must implement and comply with the Consumer Duty. The March 2023 portfolio letter also highlighted additional cost-cutting priorities:

  • Governance and leadership, including oversight of agents and distributors
  • Operational resilience, including reliance on providers of critical services such as technology and banking services
  • Regulatory reporting

The FCA stated it would make greater use of its right to charge firms that miss reporting deadlines and warned that repeated failures could lead to a referral to enforcement...

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