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FCA warns it will take action against e-money firms that fail to protect customers

The regulator will proactively test firms' safeguarding arrangements and take action if those in place don't prevent harm to customers

The Financial Conduct Authority has warned it will proactively test and take action against firms that offer e-money and payment products without robust customer protections in place.

In its 9 July “Dear Ceo” letter, the regulator told firms that if contacted, they would be expected to explain the actions they've taken to ensure customers are adequately protected.

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