FCA issues supervisory notice under PSRs

FCA has published a First Supervisory Notice against an API (EPayPro), setting out its decision to very the firm’s authorisation so as to restrict it from charging a “compliance” or any other fee that has the purpose or effect of reducing client funds, to require it to tell all clients about the decision and to keep all books and records for FCA’s inspection. The firm introduced a compliance fee for all customers by unilateral variation to its T&Cs.

FCA says it needs to take action because the firm:

• may not have complied with the PSRs in not giving customers enough notice of the change;
• may have relied on a variation term which is likely to have been unfair under the CRA; and
• may have introduced into its T&Cs a term which is likely to be unfair.

The requirement took immediate effect and will stay in place until FCA varies or cancels it.