On May 18, 2021, the UK Financial Conduct Authority (FCA) published a “Dear CEO” letter (the Letter) asking e-money institutions to ensure that their customers understand how their money is protected. The FCA has expressed concern that e-money institutions do not adequately disclose the differences in protections between e-money and bank accounts and that customers are not aware of the differences in protections between e-money services and traditional banking services, in particular that the UK Financial Services Compensation Scheme (FSCS) protection does not apply to e-money accounts.

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