The FCA has proposed, for consultation, temporary guidance additional to its payment services approach document ("Approach Document") on safeguarding client's funds and managing prudential risks in the circumstances of the COVID-19 pandemic. This guidance also addresses how firms can put in place more robust plans for winding down.

The FCA plans to publish a Dear CEO Letter to payment services providers containing this guidance as amended in accordance with the consultation feedback.

A full consultation will be carried out later in the year on changes to the Approach Document, which will likely include this temporary guidance as amended. 

Meanwhile, this temporary guidance will remain in place until the Approach Document is updated following the full consultation later in the year.