Overview

• Final rules published on August 7 require payment institutions, e-money providers and credit unions to segregate customer funds, conduct daily checks and submit monthly reports to the FCA.
• Firms holding more than £10,000 in customer money must undergo annual independent audits, while smaller operators are exempt to reduce compliance costs.
• Enhanced wind-down planning standards mandate clear procedures for returning customer funds in insolvency cases ahead of the May 7, 2026 compliance deadline.
• The reforms respond to a five-fold growth in digital payment use and past failures that left consumers with average fund shortfalls of 65%.
• UK Finance praised the proportional regime’s balance between consumer protection and practical demands for smaller firms while urging ongoing impact assessments.