Connect with us
fca1000x600 fca1000x600

News

Requirements have been imposed by UK FCA on Wirecard’s Authorisation

On 26 June 2020, the FCA imposed a number of requirements on Wirecard including, that the firm:

  • must not dispose of any assets or funds
  • must not carry on any regulated activities
  • must set out a statement on its website and communicate to customers that it is no longer permitted to conduct any regulated activities.

This follows publication to the FCA’s Register of a number of requirements which have been applied to Wirecard’s authorisation from 19 June 2020. The full requirements have been published to the FCA Register.

There are ongoing events in Germany concerning companies closely linked to Wirecard. Wirecard’s parent company, Wirecard AG based in Germany is currently the subject of law enforcement interest and insolvency proceedings. Wirecard AG is not supervised by the FCA.

Why did the FCA take this action now?

The FCA is the UK’s designated competent authority, responsible for granting firms based in the UK, permissions to undertake e-money activities and payment services and, it is within the FCA’s power to take supervisory action in certain cases to protect the interests of a firm’s customers. Under the EMRs, the FCA may impose such requirements as it considers appropriate which may require a firm to (a) take a specified action; or (b) refrain from taking a specified action. These types of requirements are known as ‘Own Initiative Requirements (OIREQ)’.

Our primary objective is to protect the interests and money of consumers who use Wirecard. Following last week’s news of €1.9 billion missing from the accounts of the German company, Wirecard, we immediately placed requirements on the firm’s UK business so that it should not pay out or reduce any money it holds for its customers except on their instructions. We have been working closely with Wirecard UK and other authorities over the past few days to take action that protects consumers. We are continuing to do this and on 26 June, we took additional measures to require the firm to cease all regulated activities in order to further protect customer money. This now means customers money cannot be accessed.

What should I do if I have e-money with Wirecard, use Wirecard to make payments or my prepaid card has stopped working? Who do I contact?

Customers should contact their card provider directly and may do so using the contact details on their website.

Customers can also contact our Consumer Helpline for further information.

What should I do if I gave money to an agent of Wirecard?

E-money firms like Wirecard may provide payment services through agents. An agent is any person (this can be an individual or a company) who provides payment services on behalf of an e-money firm. E-money firms may also appoint distributors to distribute or redeem e-money but distributors cannot provide payment services. Unlike agents, there is no requirement to register distributors and agents are published to the FCA’s Register. Where e-money firms appoint agents or distributors they are responsible for anything done by an agent or distributor.

Customers should contact their card provider or Wirecard directly if they are concerned, have any questions or for any updates.

What should I do if I gave money to an agent of Wirecard which is based in another EEA country?

An authorised e-money firm, like Wirecard, may provide payment services or e-money activities in another European Economic Area (EEA) country. This is called ‘passporting’. Passporting when a business carries on activities and services regulated under EU law in another EEA country on the basis of authorisation or registration in its home country. The activities may be carried out in the host country using a branch or a local agent / distributor or, on a cross-border services basis without a physical presence in the host country for example, a website.

Wirecard is passporting its services into all EEA countries and has established some agents and distributors in those countries. If a customer has given money to an agent or distributor of Wirecard which is based in another EEA country, they should contact Wirecard directly.

The account where I receive my benefit payments has been frozen, what do I do?

The FCA has been working with the Department of Work and Pensions (DWP) to arrange help for affected consumers. Please refer to the DWP (link is external) for support.

I am experiencing financial hardship as I can’t access money (for example, my salary) that’s been paid onto my card. What should I do?

If you’re struggling to pay for essentials you might be able to get help from a local welfare assistance scheme.

They vary from area to area and can provide, for example, vouchers, pre-payment cards, furniture or white goods and food banks.

Some local authorities might also give loans.

If you live in Northern Ireland you might be eligible for Finance Support. Find out more on the nidirect website(link is external).

Are my funds protected by FSCS?

No. The Financial Services Compensation Scheme (FSCS) only applies to certain types of activity which does not include issuing electronic money or payment services.

Under the EMRs and PSRs, there are rules on how customers’ money should be protected and these requirements are known as ‘safeguarding’.

Is there a chance I won’t get my money back? What is safeguarding?

Safeguarding is a key consumer protection measure within the EMRs and the PSRs. The purpose of safeguarding is to protect and return customer money if a firm was to fail.

Wirecard is required under the EMRs to maintain appropriate measures to safeguard customers money.  It does this by holding it separate from its own money in accounts with banks (or another credit institution).   Effective safeguarding arrangements are critical to help ensure that customers’ money is protected and returned if a firm fails. Adequate safeguarding arrangements which are compliant with the regulatory requirements are a condition of Wirecard’s ongoing FCA authorisation.

What should I do if I am a firm who outsources some operational functions to Wirecard?

Firms should contact their relevant Supervision contact to discuss the contingency plans they have in place. We have a dedicated Customer Contact Centre to give your firm a direct point of contact, email Firm.Queries@fca.org.uk

To note, we are currently consulting on new requirements on the firms we supervise to help strengthen their operational resilience including, the implications for operational resilience for firms using outsourcing and other third-party service providers. We would also draw your attention to the EBA Guidelines on Outsourcing Arrangements which apply to e-money and payment firms.

What happens next?

The FCA has published requirements to the Register in respect of Wirecard and continue working with the firm to progress these matters.

How useful was this post?

Click on a star to rate it!

Average rating 3.7 / 5. Vote count: 12

No votes so far! Be the first to rate this post.

As you found this post useful...

Follow us on social media!

Latest Articles

The main road of Sonagachi in Kolkata, India, during the lockdown in early April 2020. | Mukherjee Arindam/ABACA/ABACA/PA Images. All rights reserved. The main road of Sonagachi in Kolkata, India, during the lockdown in early April 2020. | Mukherjee Arindam/ABACA/ABACA/PA Images. All rights reserved.
India9 hours ago

Shutting down India’s red-light districts won’t contain coronavirus

Closing brothels in India would be a grand but empty gesture. It will only hide the state’s abandonment of migrants...

india1000x600 india1000x600
India9 hours ago

High number of new Covid-19 Infections in India again

Despite the almost two-month curfew, India once again reports a daily record for infections with the corona virus. The Ministry of...

india1000x600 india1000x600
India9 hours ago

Overwhelmed Indian Hospitals reject Covid 19 Patients

India is now the country with the fourth most corona infections and the country’s healthcare system is collapsing under this...

marsalek-andwirecard marsalek-andwirecard
News1 day ago

The Bizarre Life of Jan Marsalek, the Number 2 at Wirecard – Eating Sushi from a naked woman’s body

The name Jan Marsalek now stands for one of the largest economic scandals in Germany. With Wirecard AG, he managed to...

pennystockwirecard pennystockwirecard
News1 day ago

Wirecard Shares on the way of Becoming a Penny Stock !

Wirecard has filed for bankruptcy and the business, or what is left of it, practically belongs to the creditors. Nevertheless,...

marsalek1000x600 marsalek1000x600
News2 days ago

Jan Marsalek Ex-COO of Wirecard AG – Catch me if you Can

Jan Marsalek, former Wirecard board member and COO, is sought worldwide and should be on EUROPOL and INTERPOL during this...

db1000x600 db1000x600
News2 days ago

Deutsche Bank is considering taking over Wirecard Bank

At the beginning of the week it still looked as if Wirecard’s Bank would also go into bankruptcy because too...

payoneer1000x600 payoneer1000x600
News2 days ago

Thousand’s of Payoneer Mastercard Holders still Affected by Wirecard UK and can’t Access their Funds in Pakistan Bangladesh & Balkan countries

Many of Payoneer’s millions of Freelancers have their freelance work paid into the card account, which is easier to open...

Carlos Haeuser, was not only a long-standing executive of Wirecard, but his wife, Brigitte Axtner Haeuser is Head of Digital Sales for Wirecard and a named director of WDAH in Singapore in the 2018 annual report. Carlos Haeuser, was not only a long-standing executive of Wirecard, but his wife, Brigitte Axtner Haeuser is Head of Digital Sales for Wirecard and a named director of WDAH in Singapore in the 2018 annual report.
News3 days ago

Singapore extends investigation into Wirecard Scandal with Citadel & Senjo Group

After IsaanLive reported last Thursday extensively on the Round-Tripping with Senjo Group based in Singapore, the Singapore authorities are expanding their...

Jan Marsalek1000x600 Jan Marsalek1000x600
News3 days ago

Wirecard : The Indian Round-Tripping Scam by COO Jan Marsalek

Was Wirecard’s Indian acquisition deliberately structured to generate round-trip profits through EMIF? Key questions about about Wirecard’s Indian business and...

Carlos Haeuser, was not only a long-standing executive of Wirecard, but his wife, Brigitte Axtner Haeuser is Head of Digital Sales for Wirecard and a named director of WDAH in Singapore in the 2018 annual report. Carlos Haeuser, was not only a long-standing executive of Wirecard, but his wife, Brigitte Axtner Haeuser is Head of Digital Sales for Wirecard and a named director of WDAH in Singapore in the 2018 annual report.
News3 days ago

Wirecard Round-Tripping Scam with Singapore & Luxembourg Companies

As we’ve been searching for where Wirecard’s MCA business is (and the bulk of it looks not to be in...

wirecardbank1000x600 wirecardbank1000x600
News3 days ago

Wirecard’s Merchant Cash Advance Scam in Brazil & Turkey

In November 2018 Wirecard claimed it had launched a new Merchant Cash Advance (MCA) Product and in both May and...

Jan Marsalek1000x600 Jan Marsalek1000x600
News3 days ago

Ex-Wirecard COO Jan Marsalek is wanted in Manila – Could he be in Mindanao Hiding?

Jan Marsalek, may be hiding in the Philippines. The COO had been fired last week and was responsible for day-to-day...

The Great Wirecard Scam The Great Wirecard Scam
News3 days ago

The Fall of Wirecard, Fraud, Round-Tripping, Money Laundering and the Web of Lies

It is not the first time, now in Germany, already back in 2017 they conducted the same schemes in Singapore...

markus-braun-103__v-videowebl markus-braun-103__v-videowebl
News3 days ago

Six Wirecard subsidiaries file for Bankruptcy – Balance Sheet Fraud has been going on since 2014

The Wirecard balance sheet scandal seems to be taking on ever larger dimensions. According to a media report, the management team...

Trending Now