E-money and fintech payment firms are calling on the UK government to support the use of non-PRA-regulated accounts for the pay out of government-derived loans, grants and other funds alongside traditional bank accounts.
PIF, the not-for-profit industry body representing these firms says the exclusion of non-PRA (Prudential Regulation Authority) regulated accounts is placing fintechs at a competitive disadvantage.
The call comes after a number of PIF members’ customers applied for grants or loans, some in respect of Covid-19, only to have been told that these disbursements cannot be paid into an account that is not regulated by the PRA.
PIF says this seems to be based on a misunderstanding and that it is creating the perception that non-PRA regulated accounts are regulated differently to traditional bank accounts.
Paul Swinton, chairman, PIF, says: "We are extremely concerned that non-PRA regulated firms are being specifically excluded from supporting their customers by what appears to be a misunderstanding of the application of the relevant laws.
"The businesses we represent provide financial products and services that are regulated by the UK’s Financial Conduct Authority and are subject to exactly the same rules and regulations as traditional banks when it comes to verifying the identity of their customers."