UK markets watchdog tightens safeguards on remittances

LONDON (Reuters) – Britain’s markets watchdog proposed new guidelines on Wednesday to cease banks and different corporations from providing deceptive foreign money change charges to folks sending cash overseas electronically.

An English ten Pound notice is seen in an illustration taken March 16, 2016. REUTERS/Phil Noble/Illustration –

The Financial Conduct Authority stated the market for people transferring cash overseas from Britain is about 60 billion kilos a 12 months, with remittances or money despatched to family members and associates in different international locations accounting for 18 billion kilos of the entire.

“Many different types of customers make use of currency exchange transfer services to move their funds for a variety of reasons such as to send money abroad to family and friends or to purchase an overseas property,” the FCA stated in a session paper on its proposed guidelines.

The guidelines purpose to cease banks and different monetary corporations from selling unachievable change charges to shoppers, and cease corporations making claims about the price of a service supplied by one other agency except the claims might be proved to be true.

Under the proposed guidelines, if service suppliers current comparisons with rival companies to shoppers they should be truthful and balanced and able to being substantiated.

Some business conduct guidelines that apply to different components of retail monetary companies may even be prolonged to cash sending companies, requiring them to deal with prospects pretty.

“Our proposals seek to address the harm we have seen where firms have issued potentially misleading communications to consumers,” the FCA stated.

The proposed guidelines won’t apply to bureaux de change that supply cash-for-cash change of currencies.

The public session closes in November and the brand new guidelines will probably be printed earlier than Jan. 31, 2019.

Reporting by Huw Jones; Editing by Susan Fenton

Our Standards:The Thomson Reuters Trust Principles.

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