The UK Labour Party is in discussions with Buy Now, Pay Later (BNPL) companies to draft suitable regulations for the sector, balancing the need for consumer protection with the risk of driving these companies out of the UK market. The Financial Conduct Authority (FCA) is pushing for swift action, but with an election on the horizon, the current government is hesitant to make swift regulatory moves. Meanwhile, UK fintechs are concerned about new fraud legislation that might slow down fast payments, a cornerstone of their service appeal. Additionally, the FCA is initiating a review of financial firms' treatment of vulnerable customers. As small and medium-sized enterprises (SMEs) struggle, there's debate over a banking rule that could make it more expensive for banks to lend to these businesses.
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