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Wirecard : the FCA's freezing of assets.

BIScom Subsection: 
Author: 
Editorial Staff

In his blog (here), Nigel Morris-Cotterill talks of chickens coming home to roost, a lack of attention by regulators too anxious to become FinTech hubs and the constraints on prudential management of FinTechs operating across borders, especially under the EU's central regulatory regime.

The UK's regulator knew about problems within the Wirecard network when a local company associated with it got into trouble - and Wirecard didn't rescue it.

The article concludes that, given where the Financial Conduct Authority started, it did a fine job.

But it should not have started where it did and the reasons for that are complex but basically comes down to this: regulators in the UK, the EU and elsewhere do not understand the nature of what they are regulating. If they did, protections would be in place before problems arise.

 

 

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