AUS
NZ
UK
CA
USA
IND
_08_22_2022_02_17_23_186891_11_01_2022_05_04_36_805227.jpg){kind=logo}
Highlights
- EML Payments’ shares were trading 33.33% higher at AU$0.54 each on the ASX at 2.49 PM AEDT today (1 November).
- This might be because of the overall technology sector, which was up 0.75% at 3.00 PM AEDT.
- Yesterday, the company shared an update on its regulatory matters.
ASX-listed software and services company EML Payments Limited's (ASX:EML) shares were trading 33.33% higher, at AU$0.54 each, on the ASX at 2.49 PM AEDT today (1 November).
Although no updates were shared by the company today, yesterday (31 October) it shared an update on its regulatory matters.
Despite the news shared not being positive, EML's shares have zoomed up today. This might be because of the performance of the overall technology sector, which was up 0.75% at 3.00 PM AEDT.
Following concerns expressed by the UK financial regulator, the Financial Conduct Authority (FCA), EML declared through an ASX filing that it would temporarily stop accepting new clients, agents, and distributors in regard to its UK subsidiary, Prepaid Financial Services Limited (PFS UK).
The EML Group's income will be reduced by less than AU$5 million as a result of this interim action in FY23, according to the announcement by the company.
As previously disclosed to the ASX, PCSIL is subject to a substantial growth cap that will expire in December 2022. Although there may be additional regulatory guidance or restrictions, their removal would be contingent on successful completion of the corrective action plan and a positive third-party evaluation. Similarly to this, the FCA won't be satisfied that PFS UK has successfully carried out a remedial plan based on a satisfactory third-party evaluation until PFS UK's agreement to stop onboarding has been fulfilled.
Image source: © 2022 Kalkine Media®
Data source: Company announcement dated 31 October 2022
The payments and e-money industries have expanded significantly over the past few years, and EML, like many other payments companies, is now under more regulatory scrutiny across Europe. Despite the fact that the supervisory procedure is normally private, EML is required to disclose it as part of its ongoing disclosure requirements.
EML has operations in the United States, the UK, Australia, and Europe.
Stock performance: Shares of EML have fallen over 30% in the last month and more than 65% in the last six months. However, its share price has declined around 83% on a year-to-date basis.
