FinTech UK Savings Platform -- FCA Cash ISA and FSCS Protection

FCA COBS Savings Product Compliance

FCA COBS (Conduct of Business sourcebook) for savings: (1) product disclosure (savings rates must be prominently displayed -- COBS 6 financial promotions -- rate, term, conditions), (2) easy access vs fixed term (COBS disclosure for fixed-term savings -- what happens at maturity, early withdrawal penalties), (3) consumer understanding (COBS consumer understanding outcome -- savings product description in plain English, Grade 8 or below Flesch-Kincaid), (4) fair value (Consumer Duty fair value outcome -- savings rate must represent fair value vs bank deposit rate -- compare platform fee to rate benefit), (5) product governance (Consumer Duty product governance -- each savings product has a target market and fair value assessment).

HMRC Cash ISA Manager

savings platforms offering Cash ISAs must be authorised as HMRC ISA Managers.

ISA Manager requirements

• 1HMRC ISA Manager application (application to HMRC Savings and Financial Resilience team -- approval 3-6 months),
• 2ISA Manager obligations (annual ISA return to HMRC -- ISAPAAF data),
• 3ISA subscription limit enforcement (GBP20,000 ISA allowance per tax year -- platform must enforce per-customer subscription limit across all ISA types),
• 4ISA transfer authority (ISA Transfer Authority form -- customer transfers ISA from one manager to another -- 15-business-day transfer SLA),
• 5ISA repair (HMRC ISAPAAF error correction -- reporting invalid subscriptions to HMRC).

ClickMasters HMRC ISA API integration

• automated annual ISA return and transfer authority processing.
• FSCS Protection Display and Multi-

Bank Optimisation

• FSCS (Financial Services Compensation Scheme): deposits with FCA-authorised banks protected up to GBP85,000 per institution per customer.
• Multi-bank savings platform

FSCS display

• 1per-institution FSCS status (each savings provider -- which FSCS institution they belong to -- shared institutions share the GBP85,000 limit),
• 2FSCS optimisation (customer with > GBP85,000 savings -- platform recommends spreading across institutions for full FSCS coverage),
• 3FSCS calculator (interactive tool -- customer enters total savings, platform calculates FSCS exposure per institution),
• 4FSCS disclosure (every product page -- FSCS protection status prominently displayed -- FCA financial promotion requirement),
• 5FSCS information (PRA Eligible Deposits and Covered Deposits Regulations 2015 -- annual FSCS information sheet to customers).

AML MLRs 2017 for savings

• 1KYC at onboarding (Onfido identity verification -- UK passport/driving licence),
• 2source of funds (for deposits > GBP10,000 -- source of funds evidence),
• 3PEP/sanctions screening (ComplyAdvantage -- all customers screened at onboarding and annually),
• 4transaction monitoring (suspicious deposit patterns -- round-number large deposits, rapid in-out),
• 5SAR filing (NCA goAML within 24 hours of decision to file).

AML considerations specific to savings

• 1structuring (customer makes multiple deposits just below GBP10,000 -- structuring alert),
• 2introduction of proceeds (large deposit from unexpected source -- EDD triggered),
• 3dormant account reactivation (dormant account suddenly active with large deposit -- alert).