FCA lifts partner onboarding restrictions on UK fintech Modulr

Key Points:

1. Lifted Restrictions:
   • The FCA has lifted the temporary partner onboarding restrictions imposed on Modulr last October.
2. Original Order:
   • Modulr was ordered to stop onboarding new agent and distributor (A&D) partners due to regulatory concerns.
3. Enhancements Made:
   • Modulr has made several improvements to its A&D Partner onboarding and oversight processes.
   • These changes included extensive internal and external testing and assurance.
4. Agreement with FCA:
   • Modulr can now recommence onboarding new A&D partners.
   • Must provide “prior written notification to the Authority of at least 10 business days” before onboarding any new A&D partners.
5. Modulr’s Statement:
   • Modulr emphasized its commitment to monitoring A&D Partner regulatory adherence and maintaining high standards.
6. Service Offering:
   • Modulr enables businesses to integrate payments directly into their platforms without managing the complexities of payment systems or networks.
7. Impact:
   • This development allows Modulr to expand the reach of its payment services by enlisting new A&D partners to issue electronic money on its behalf.