In this episode of the Atomic Impact Podcast, host Jason Osborn speaks with Lee Werrell, owner of UK Compliance Consultant Limited, also known as Compliance Doctor, about building a successful regulatory compliance consultancy in the financial services sector. Lee shares insights on the importance of relationships, dialogue over hard selling, and creating practical frameworks that help businesses navigate complex compliance requirements with speed and clarity. He also discusses lessons learned from decades in business and his goal of scaling Compliance Doctor into a seven-figure consultancy.With Jason Osborn - https://www.linkedin.com/in/jasonaosborn/

The main document, thoroughly examines the provisional agreement for the European Union’s Payment Services Regulation (PSR) and Third Payment Services Directive (PSD3). This regulatory shift introduces a "fraud liability revolution" by dramatically increasing the financial responsibility of Payment Service Providers (PSPs) for fraud losses, especially those resulting from impersonation scams.

Crucially, the agreement extends financial accountability beyond the financial sector by establishing a new liability chain for online platforms and electronic communications providers who fail to cooperate in fraud prevention. PSPs are consequently compelled to overhaul operations, including implementing mandatory Name-IBAN verification systems, offering human customer support, and strengthening open banking standards ahead of the formal adoption and implementation timeline.

The podcast outlines significant amendments and guidance concerning payment services and electronic money institutions within the UK, primarily focusing on strengthening consumer protection and market integrity. Key changes include a revised safeguarding regime for relevant funds, detailing how these funds must be held and protected, particularly in the event of a firm's failure, and introducing specific safeguarding audit requirements with a new exemption for smaller firms. Furthermore, the texts address capital requirements, operational risk management, and security measures like strong customer authentication, alongside clarifying reporting obligations and enforcement powers under the Payment Services Regulations 2017 and Electronic Money Regulations 2011. The podcast aims to provide clarity for businesses operating in this sector and enhance regulatory oversight, including the new Fit & Proper requirements.

Financial Conduct Authority's (FCA) intention to consult on a compensation scheme for motor finance customers who were subject to unfair practices. This initiative stems from a detailed review and a Supreme Court ruling that identified instances where lenders acted unlawfully due to undisclosed commission payments to car dealers. The FCA aims to establish an industry-wide scheme to ensure fair, consistent, and efficient compensation for consumers, potentially covering agreements dating back to 2007. The consultation will address crucial aspects like the scope of the scheme, redress calculation methodology, and interest payments, aiming for a launch in 2026. The FCA also advises both firms to assess potential liabilities and consumers to complain directly without necessarily involving claims management companies.

One document details a compliance consultancy's offerings, including FCA authorisation, benchmark audits, training, and tailored advice, highlighting their expertise in helping businesses navigate complex financial regulations and avoid penalties. The second source, a policy statement from the Financial Conduct Authority (FCA), announces new, more flexible rules for mortgage advice, affordability assessments, and remortgaging, aiming to simplify processes for consumers while maintaining protection under the Consumer Duty. This FCA document also addresses feedback from various stakeholders and explains the rationale behind retiring certain non-Handbook guidance, ensuring firms continue to treat customers fairly, particularly those with expired mortgage terms.

The Financial Conduct Authority (FCA) has published a revised Enforcement Guide (ENFG) and associatedinstruments, which come into effect on 3 June 2025. This revision incorporates feedback on earlier proposals and aims to provide greater transparency regarding enforcement investigations. Key changes include a revised publicity policy for investigations, specific approaches to investigating unauthorised activity and individuals, and clarifications on the use of various statutory powers. The revised guide is abbreviated to ENFG and replaces the previous version.

In this episode, we dive into the UK Government’s official response to its consultation on Buy-Now, Pay-Later (BNPL) regulation—marking a pivotal shift in how short-term interest-free credit is governed.

🎯 What’s Changing?

The Treasury’s 2025 consultation confirms that BNPL agreements offered by third-party lenders will come under formal regulation. In contrast, merchant-provided BNPL will stay exempt for now under Article 60F(2) of the RAO, though this may change if consumer harm escalates.

🔍 Key Takeaways:

• Third-party BNPL to be regulated: These providers must now seek FCA authorisation and comply with tailored rules being developed.

• Merchant-provided BNPL still unregulated: Despite concerns over a two-tier market, the government sees limited current harm here but will monitor it closely.

• Consumer Credit Act exemptions: Traditional CCA disclosure obligations will not apply. Instead, the FCA will design a more effective rules-based disclosure regime.

• Section 75 protections apply: Consumers will benefit from robust purchase protection, even under BNPL arrangements.

• Affordability checks and consumer duty: FCA’s principles-based oversight and rules on arrears and forbearance will cover BNPL agreements, supported by access to FOS and Breathing Space.

• Financial promotions tighten: Merchants must have their BNPL promotions approved by authorised firms; TPR (Temporary Permissions Regime) firms can approve their own.

• Time orders and debtor protections retained: Safeguards like court time orders and requirements after a debtor’s death remain in place.

📋 Implementation Timeline

The Statutory Instrument (SI) will be laid before Parliament in 2025. The FCA will consult and finalise rules within 12 months. The new BNPL regime is expected to be live by mid-2026.

🏢 For Firms: Be Ready

From affordability assessments to compliant disclosure and governance, the transition to regulation demands preparation. Compliance Consultant offers FCA authorisation support, training, audits, and a 25% discount until September 2025 for BNPL firms.

🛡️ Let’s ensure your firm is ready for the regulatory frontier.

📞 Book a Discovery Call now: https://bit.ly/CCDiscovr

#Hashtags:
#BNPLRegulation #ConsumerCredit #FCAAuthorisation #UKFinance #BuyNowPayLater #ComplianceConsultant #FCAUK #FinancialServices #RegulatoryChange #ConsumerDuty #CreditCompliance #MakingComplianceWork

In this in-depth episode, we break down the FCA’s latest consultation paper, CP25/14, on the proposed regulatory framework for the issuance of qualifying stablecoins and custody of qualifying cryptoassets in the UK.

From consumer protection to market integrity, the FCA’s goal is clear: make stablecoins function like trusted, money-like instruments while setting robust guardrails for those safeguarding cryptoassets.

Key Highlights:

🔹 Stablecoins Must Be Fully Backed: The FCA proposes that all qualifying stablecoins must be 1:1 backed by assets, with a statutory trust imposed over backing assets. This ensures enhanced security for holders and robust liquidity safeguards.

🔹 Redemption at Par, No Interest Pass-Through: Issuers must redeem at par (face value) and are barred from distributing interest on backing assets—ensuring these coins don't masquerade as investment products.

🔹 Dual Regulation for Systemic Issuers: Stablecoins deemed systemic will be jointly regulated by the FCA and Bank of England, with the Payment Systems Regulator also playing a role.

🔹 Custody Rules Under CASS 17: Any UK-based firm (or firm servicing UK clients) offering custody of qualifying cryptoassets must hold assets under a non-statutory trust and implement clear governance, selection, and oversight frameworks for third-party custody providers.

🔹 Expanded Backing Assets? Prepare for the BACR: Issuers using a broader range of backing assets (e.g. MMFs, longer-term debt) must calculate and maintain a minimum ratio of core assets through the Backing Asset Composition Ratio—based on peak redemption forecasts.

🔹 Strict Redemption Timing: All redemption requests must be fulfilled by T+1 (next business day), unless prohibited by law or if the customer requests an alternate currency.

🔹 Consumer Duty Considerations: While CP25/14 contains its own set of obligations, the broader application of the FCA Consumer Duty to crypto markets is expected in future consultations.

🔹 Third-Party Contracts & Acknowledgements: Issuers using outsourced services must maintain responsibility for redemption, communications, and compliance, with formal trust acknowledgement letters from third-party asset holders.

The FCA is pushing for proactive, proportionate regulation—focusing supervisory efforts on firms posing the greatest risk, while supporting innovation and clarity in an evolving market.

📌 Why it matters: With most UK consumers currently using overseas crypto custodians, the FCA's move is both protective and pre-emptive—aimed at setting global standards while safeguarding the UK’s digital asset space.

💼 How We Help: At Compliance Consultant, we guide firms through FCA authorisations, crypto registration, governance reviews, wind-down plans, and tailored training, ensuring you're never caught off guard.

🎙️ Tune in to hear what these changes mean for your business—and how to stay ahead of the compliance curve.

📅 Book a Discovery Call now: [https://bit.ly/CCDiscovr](https://bit.ly/CCDiscovr)