FCA lifts partner onboarding restrictions on UK fintech Modulr
The UK’s Financial Conduct Authority (FCA) has lifted the temporary partner onboarding restrictions it previously placed on embedded payments platform Modulr last year.
FCA lifts partner onboarding restrictions on Modulr
The regulator had originally ordered the London-based electronic money institution (EMI) to stop onboarding new agent and distributor (A&D) partners last October.
“Following a temporary pause in onboarding new Agent & Distributor (A&D) Partners in the UK, we have made a number of enhancements to our A&D Partner onboarding and oversight processes,” Modulr tells FinTech Futures in a statement.
“Having now implemented these changes as well as undertaking extensive internal and external testing and assurance, we have agreed with the UK’s Financial Conduct Authority (FCA) to recommence new A&D Partner onboarding subject to providing advanced notice of each A&D Partner.
“We take our responsibility for monitoring A&D Partner regulatory adherence extremely seriously and will continue to work closely with the FCA to maintain the highest possible standards in this area.”
This development means that Modulr can once again enlist A&D partners to issue electronic money on its behalf to expand the reach of its payment services.
The FCA says in a notice that Modulr has agreed with the regulator to provide “prior written notification to the Authority of at least 10 business days” when onboarding any new A&D partners.
Modulr enables businesses to build payments directly into their own platforms without needing to build out their own payment systems or manage the complexities of payment network membership.
