People transferring money overseas should check they are using an FSA-regulated money transfer company, according to new advice issued by the regulatory body this week.
Competitive exchange rates can be obtained from alternative providers to traditional banks and building societies – but firms offering such a service who are not regulated by the FSA have not been vetted, and consumers cannot therefore guarantee the safety of their funds.
The FSA has now published a register of regulated companies, which have been vetted to ensure that, for example, the firm’s owners have no criminal history, and that client funds are segregated and safeguarded, providing protection for clients as their money passes through the system. Regulation also requires customers to be treated fairly, and provides guarantees for the speed and costs associated with transferring money abroad in Euros, Dollars or any other currency.
“There are hundreds of money transfer businesses in the UK, and choosing one can be a difficult decision for customers”, said Dan Waters of the FSA. The register of authorised and registered companies can be seen at www.fsa.gov.uk.
Robin Haynes, of brokers Currency Index Ltd, said “As an FSA-authorised company, we take the responsibility of handling client funds very seriously. It is important that individuals sending payment abroad know that their money is in safe hands, as well as making sure they get a competitive deal on their exchange rate.”
The FSA has also issued a leaflet, “Sending Money Safely”, on the subject, which will help customers decide who to use for their payments.
