The Financial Conduct Authority (FCA) has blocked digital banking firm Samsky Pay Ltd from carrying out regulated activities.
Samsky Pay had permission to provide money remittance services, but the firm “appeared to have provided investment products or services, entered into written investment agreements and received deposits of funds from customers, without the necessary permissions to do so”, according to the regulator.
The watchdog said: “We believe Samsky Pay was providing its customers with payment accounts, despite not having the appropriate permissions. Samsky Pay also appeared to be advertising e-money and digital banking services to consumers despite not having the appropriate permissions to provide these services.”
In a warning to consumers, the regulator explained that investments with Samsky Pay may not be protected.
It said: “Samsky Pay has never been permitted by us to provide regulated investment services. Any investments offered by the firm could see consumers lose all their money.”
The watchdog clarified that a business does not have to be FCA-regulated to raise funds by issuing shares or debt securities such as bonds or loan notes, but that such services are likely to be regulated and subject to its rules.
