Is Your Money Safe with Wise and Revolut? New FCA Safeguarding Rules Explained (May 2026)
What's changing on May 7, 2026?
The UK Financial Conduct Authority (FCA) published Policy Statement PS25/12 on August 7, 2025, introducing the most significant overhaul of safeguarding rules for payment institutions and e-money institutions since their inception. The new rules take effect on May 7, 2026.
These rules affect every FCA-regulated money transfer company, including Wise, Revolut, Remitly, WorldRemit, and dozens of smaller providers.
What the new rules require
| Requirement | Before May 2026 | After May 2026 |
|---|---|---|
| Fund reconciliation | At least once each business day (FCA guidance) | Daily reconciliation of safeguarded funds |
| Audits | Annual audit expected (guidance) for firms that need a statutory audit | Annual reasonable-assurance audits by qualified auditors |
| Reporting | Annual reporting only | Monthly regulatory returns to the FCA |
| Wind-down planning | No requirement | Mandatory resolution pack enabling timely fund recovery |
| Third-party review | No specific requirement | Contingency plan at least 3 months before a safeguarding insurance policy or guarantee expires |
Why this matters: the insolvency problem
Unlike banks, payment firms like Wise and Revolut are not covered by the Financial Services Compensation Scheme (FSCS). If a payment firm fails, your money is not automatically protected up to £120,000 like it would be with a bank.
The FCA found alarming data from 12 payment firms that became insolvent between 2018 and 2023:
- Average shortfall was 65% between funds owed to customers and funds actually safeguarded
- For e-money institutions alone, the shortfall averaged 80%
- In 8 of 12 cases, shortfalls exceeded £1 million
- Where funds were returned, it took an average of 2.3 years
The new rules aim to prevent this by requiring daily checks, annual audits, and pre-built wind-down plans.
Which providers are affected?
All FCA-regulated payment institutions (PIs) and e-money institutions (EMIs). This includes:
- Wise (EMI, authorized by FCA)
- Revolut (full UK banking licence since March 2026)
- Remitly (FCA-authorised in the UK)
- WorldRemit (EMI, authorized by FCA)
- PayPal (FCA-authorised in the UK through PayPal UK Ltd)
Firms safeguarding less than £100,000 over a 53-week period are exempt from the audit requirement — but this covers only ~23% of firms and just £3.2 million of the £27 billion+ in customer funds held sector-wide.
Is your money safe right now?
Yes — with reputable, FCA-regulated providers. The key protections:
- Safeguarding: All regulated providers already ring-fence customer funds in separate accounts. The new rules strengthen how this is done, not whether it's done.
- Regulation: Wise, Revolut, and Remitly are all authorized by the FCA, which can intervene if rules are breached.
- Speed: Money transfer transactions typically complete within minutes to days — your funds aren't held for long periods.
For a full guide on verifying any provider, see our money transfer safety guide. To compare regulated providers, use our live comparison tool.