| Money transfer firms to be regulated by FSA |
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| Written by Gary Howes |
| Monday, 11 May 2009 09:31 |
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Economic Policy News: The FSA are to become the regulators of the money transfer market from November 2009. The move is in response to the difficulty consumers face when trying to discern between a professional company with proper controls, and small start ups with little or no credentials. All money transmitters will be required to register with the FSA, and companies transferring more the 3 million euros per month will need to seek authorisation. This will require "fit and proper" tests on owners and directors, as well as a detailed application process that includes close financial scrutiny. Of importance, is that these firms will become subject to the FSA "conduct of business" rules, which provide for fair treatment of customers, and detail the sorts of controls and internal procedures that must be in place for companies to operate in the sector. Although firms that started operations before December 2007 do not have to be authorised until April 2011, they will still be subject to conduct of business rules from November 2009, which means that consumers will benefit from access to the Financial Ombudsman service should they have cause for complaint. Well established, reputable brokers welcome the new regulations as they will raise the profile of the industry as a whole, and help to weed out unsavoury or unsound companies. Jon Beddell, managing director of TorFX said, "We're delighted that the currency transfer market will now come under the FSA's regulatory umbrella. This can only help both consumers and the industry as a whole. Customers deserve to know that they are dealing with companies that have passed the strict FSA scrutiny that will be applied, as well as being able to transact in the knowledge that they have recourse to the Financial Ombudsman if they are not treated fairly." 
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