Moneycorp comply with new Payment Services Regulations
Moneycorp became one of the first to comply with the new payment service regulations which came in to effect on the 1 November 2009.
The new Payment Services Regulations (PSRs) came into effect to protect consumers who transfer money abroad which effects all companies that are non-bank payment service providers. Companies will need to be either registered or be authorised by the Financial Services Authority (FSA) and have two years to do this starting from 1 November 2009.
The main benefit for consumers and businesses is that their money is now protected, where Money Transfer companies such as Moneycorp have to operate a seperate client account to separate your money. This is welcomed by companies such as Moneycorp, TorFX, GCEN and AxiaFX.
David White Managing Director of AxiaFX said
We welcomed the new Payment Services Regulations and set out registering AxiaFX back in February and have only just received our registration details, Our company has always operated a separate client account to protect our customers. This will false a lot of Foreign Exchange providers to comply and ensure that the customers can complain to an independent body if they are not receiving a high level of service."
The change should be welcomed by all as over the past few years there have been some horror stories of foreign exchange companies going under and consumers and businesses losing hundreds of thousands of their money.
As of 1 November 2009, such businesses are now known as Payment Institutions (PIs). Compare Prepaid are pleased to announce that as of November 1 2009, AxiaFX, Moneycorp and TorFX are all authorised and regulated by the Financial Services Authority for the provision of payment services
The PSRs establish certain rules governing how authorised PIs provide payment services where both the payer and the payee are located within the European Economic Area (EEA). These rules are designed, in part, to ensure customer protection.
Authorised PIs will be required to safeguard client funds they hold in relation to an electronic payment.
They will also have to meet stringent criteria set by the FSA in terms of corporate governance, solvency and risk identification and management.