Payments in 2026 #1 – Safeguarding

This year the UK Financial Conduct Authority is raising the bar for what payments and e-money institutions need to do to protect their customers’ money.

A regulatory ratchet

Legislation sets the framework for how payments firms safeguard customer funds. Last year the FCA finalised new rules that supplement the existing law. The new regime in CASS 15 seeks to address weaknesses in current safeguarding practices and make it easier for the FCA to intervene if its standards are not being met.

The FCA rules apply from 7 May 2026. Among other things, payments and e-money firms need to be ready for the new record-keeping, reconciliation and regulatory reporting requirements. They will also need to be able to show ongoing compliance to their auditors and the FCA.

The FCA will monitor how firms implement the supplementary regime through audits and monthly returns. It may revisit more stringent proposals if the industry fails to meet its expectations.

Date for the diary: 7 May 2026 – FCA’s CASS 15 safeguarding rules take effect.

This is the first in a series of blogposts looking at the outlook for payments regulation in the UK and EU. Read our Payments Outlook 2026 for more.