FCA says it cannot lift restrictions on Wirecard amid concerns about client money safety
Teams from across the FCA have been working with the firm, and other international and UK authorities, over the weekend.
The UK Financial Conduct Authority (FCA) today provided an update on the Wirecard matter.
Following last week’s news of €1.9 billion missing from the accounts of the German company, Wirecard, the FCA imposed requirements on the firm’s UK business so that it should stop carrying out regulated activities and not pay out or reduce any money it holds for its customers except on their instructions.
Today, the FCA said that its teams have been working with the firm, and other international and UK authorities, over the weekend, and that they have seen good progress by the firm in meeting the conditions the FCA set.
The FCA notes that it isa maintaining pressure on the firm to resolve these issues which would allow it to operate under certain conditions. However, the regulator notes that it cannot lift the restrictions without making sure that the firm have been able to satisfy all its concerns (for example, that all client money is safe).
As FinanceFeeds has reported, 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.
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.