- Modulr, a London-based electronic money institution (EMI), has been subjected to partner onboarding restrictions by the Financial Conduct Authority (FCA).
- As an EMI, Modulr provides businesses with the infrastructure to integrate payments into their platforms without the need to develop their own payment systems.
- Under the agreement with the FCA, Modulr will not onboard new agent or distributor partners without prior written consent.
- The use of agent and distributor partnerships has been a source of significant growth for Modulr. However, this growth brings specific risks and challenges that need oversight and management.
- Modulr has temporarily paused the onboarding of new agent and distributor partners to ensure its governance, systems, and controls align with the scale of its business and regulatory requirements.
- The restrictions will not affect existing partners, onboarding new direct customers, or the growth of Modulr’s European business.
- During the restricted period, which began on October 4 and has no defined end point, Modulr plans to adapt its business to recent regulatory changes related to the Consumer Duty, APP fraud reimbursements, and financial promotions
