The Financial Conduct Authority (FCA) has today sent an email to all firms carrying out currency transfer services explaining that some firms may be marketing their services in a misleading way. Specific concerns relate to the misleading presentation of the interbank rate, savings claims and use of FCA authorisation status to promote their services. The communication has also been sent to trade bodies representing this market.
Update: To follow up on our communication of 26 May 2016, on 24 August 2016 we wrote to a number of firms in the initial sample whose promotions we consider to be potentially misleading. We have advised those firms of our concerns specific to their promotions, and sought information as to the accuracy of those promotions, as well as other information with particular focus on consumer outcomes. Those firms have to respond to us by 14 September 2016 and depending on how they respond to our letter, we may take further regulatory action. Any firms (in addition to those to whom we have written to in August) who have not taken the steps required by our communication of 26 May should immediately do so.
Further update: We have received responses from the relevant firms, and we will take any further regulatory action we consider to be appropriate.