The Financial Conduct Authority (FCA) has recently published an update on the situation with Wirecard UK, in which the regulator has announced that it has lifted some of the restrictions previously imposed against the firm.
The easing of restrictions allows the company to resume operational activity. The measures were put in place after its parent company, Wirecard AG, went into insolvency following a multi-year fraud that resulted in a €1.9 billion hole in its balance sheet.
On Monday, the FCA said in a statement: “We have been working closely with Wirecard UK and other authorities over the last few days to ensure that the firm was able to meet certain conditions required to lift the restrictions we imposed on it. We are now in a position to allow Wirecard to resume operational activity.”
Wirecard UK, or Wirecard Card Solutions Limited (FRN 900051), is authorized and supervised by the FCA to issue e-money and provide payment services including issuing e-money onto prepaid cards. With the regulator’s consent, the company can now resume electronic money and payment services to its customers.
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The restriction on activities was lifted at 00.01 on the 30th of June 2020. As Finance Magnates reported, the UK regulator originally placed restrictions on the fintech company on the 26th of June.
The measures implemented against the payments company included the firm not being able to dispose of any assets or funds, couldn’t carry on any regulated activities, and that it had to have a statement on its website informing that it is no longer permitted to conduct any regulated activities.
Some FCA measures remain in place for Wirecard UK
Following the lifting of restrictions, customers will be able to use their cards as normal. Should any customers have issues when using their cards, the regulator advised them to contact their card provider directly.
“We know that some people may have faced difficulties over the weekend and we worked with DWP, HMT and the Home Office in order to help anyone suffering financial distress. Anyone who is still in difficulties should see our website for more details,” the FCA said in the statement.
However, some restrictions do remain in place. Namely, there are still restrictions over where Wirecard UK can hold customer monies and restrictions over its ability to transfer its own assets.