FCA: Risk management and wind-down planning at e-money and payments firms – multi-firm review

FCA has found that risk management frameworks and wind-down plans in firms remain underdeveloped.  The regulator identified three main areas of improvement for firms’ risk management frameworks: enterprise-wide risk management frameworks; liquidity risk management, and consideration of group risk.  None of the firms reviewed fully met expectations, and in particular were not following the guidance in FG20/1.  FCA urges firms to compare its findings to their arrangements to see if they meet existing expectations.  Examples of good practice and areas for improvement are set out in this report.