FCA publishes multi-firm review on risk management and wind-down planning at e-money and paymen...
The Financial Conduct Authority (FCA) has published a multi-firm review examining risk management and wind-down planning (WDP) practices across 14 e-money and payments firms. The review focused on enterprise-wide risk management frameworks, liquidity risk management, group risk, and the operability of wind-down plans. While some good practices were observed, the FCA found that no firm fully met its expectations, particularly those outlined in FG20/1 and TR22/1. Risk frameworks were often underdeveloped relative to firms’ scale and complexity, and WDPs lacked sufficient detail, testing, and alignment with risk appetite and financial resource planning. The FCA encourages all firms to assess their current arrangements against these findings and make necessary improvements. The review does not introduce new expectations but reinforces existing guidance to support sustainable growth and orderly market exits. Firms are directed to consult relevant publications, including FG20/1, the Wind-down Planning Guide, and the FCA’s 2025 portfolio letter for payments firms.
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