FCA Cancels Registration of First Money Services Over Regulatory Breaches

The UK Financial Conduct Authority (FCA) has cancelled the registration of First Money Services, a Small Payment Institution, after determining that the firm failed to meet key requirements under the Payment Services Regulations 2017.

In a Final Notice dated 22 December, the FCA said First Money Services had not provided payment services within 12 months of being registered, a core condition for maintaining its status. The regulator also found the firm had failed to remain compliant with anti-money laundering obligations under the Money Laundering Regulations.

In addition, the FCA stated that the company reported providing payment services after its registration with HM Revenue & Customs had lapsed. The regulator noted that a prior notice had been issued to the firm, but the decision was not challenged within the required 28-day referral period, allowing the cancellation to take effect immediately.

The FCA said the action was necessary to support its consumer protection and market integrity objectives. As a result of the cancellation, First Money Services is no longer authorised to carry out regulated payment activities in the UK.

The regulator reminded other Small Payment Institutions that maintaining active operations and full compliance with regulatory and anti-money laundering requirements is essential throughout their registration period.