UK’s FCA places partner onboarding restrictions on embedded payments platform Modulr

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