Written by Modulr | Jul 24, 2025 11:00:00 PM
Modulr Finance, as an Electronic Money Institution (EMI) regulated by the Financial Conduct Authority (FCA), must comply with both the Electronic Money Regulations (EMR) and the FCA's Consumer Duty. The Consumer Duty requires firms to act in good faith, avoid causing foreseeable harm, and enable customers to pursue their financial objectives. For financial businesses, this means designing, pricing and managing products and services with the customer in mind first and foremost. Modulr is also subject to EMRs that govern the issuance of e-money and safeguarding of customer funds. These regulations ensure customer money is protected through safeguarding practices and, in Modulr's case, includes holding client funds in separate accounts at highly stable banks and the Bank of England, and holding an additional 2% of safeguarded funds to cover administrative costs in the event of returning those safeguarded funds in the event of insolvency.