UK FCA Urges BNPL Firms to Apply for Authorization

The United Kingdom's Financial Conduct Authority (FCA) announced on Thursday urging unregulated Buy Now Pay Later (BNPL) firms to apply for authorization from the regulator.

According to the announcement, prior to the UK leaving the EU, EEA-based firms were able to operate in the UK without FCA's direct authorization.

The Temporary Permissions Regime, which allowed EEA firms to continue to operate in the UK while transitioning to the full UK regulatory regime, is coming to an end after 3 years.

The regulator is assessing the last of the firms in the regime for full authorization, including some firms that offer regulated lending products, but also offer unregulated Buy Now Pay Later (BNPL) products.

FCA noted: "Which products and services fall under our remit is decided by the Government with Parliamentary approval. At the moment, exempt BNPL products have not been brought under our regulation."

The UK Financial regulator warned customers to be vigilant about such offerings.