MBNA requests change of UK status with FSA
Specialist card issuer applies for exemption from traditional banking regulations
By Gaurav Sharma | CFO UK | Published 11:52, 03 December 12
Credit card issuer MBNA Europe Bank Limited has changed its name to MBNA Limited and has applied to the Financial Services Authority (FSA) for a change of its regulated status in the UK.
In a statement on Monday, MBNA said that it has sought to make the change because it is currently regulated like a traditional bank but does not offer traditional banking services in the UK. Subject to FSA approval, MBNA will be authorised by the regulator under the Payment Service Regulations 2009 as a payment institution rather than a traditional banking institution.
MBNA said there will be no change to the statutory protection its customers currently enjoy through the Financial Ombudsman Service (FOS). It will continue to be authorised and regulated by the Financial Services Authority (FSA) for general insurance activities, and licensed by the Office of Fair Trading (OFT) for consumer credit activities.
It is currently in the process of phasing out the previous name and replacing it with the new name on all materials. Acquired by Bank of America in 2006, MBNA has made a name for itself as world's largest independent card issuer specialising in affinity cards for retail brands, airlines, sports franchises and institutions.
In the UK, apart from issuing cards for sports franchises such as Manchester United, Arsenal and Leicester Tigers rugby club, MBNA also issues specialist credit cards for CIMA, ICAEW and ACCA.
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