EML Payments - UK regulator raises concerns

EML Payments has announced that due to concerns raised by the UK regulator, the Financial Conduct Authority (FCA), it will temporarily cease onboarding new customers in relation to its UK subsidiary Prepaid Financial Services Limited (PFS UK). Concerns are similar in nature to those raised by the Irish regulator relating to PFS’s Irish subsidiary and should be addressed as part of the remediation programme that is currently underway. The cap on new business is likely to reduce FY23 revenue by up to c 2% and to resolve the issue, is likely to require additional compliance and risk management expenditure; we maintain our forecasts pending the update on the strategic review due on 25 November.