Fintech startup Lanistar was rapped by the UK's financial watchdog
- The UK's financial watchdog warned Wednesday
fintechLanistar wasn't authorised to operate.
- Lanistar is gearing up to launch the "world's most secure"
- The Financial Conduct Authority (FCA) said Lanistar "is targeting people in the UK," and advised consumers to "be especially wary of dealing with this unauthorised firm."
- Lanistar rejected the FCA's statement, saying: "Legal and regulatory compliance are central to Lanistar's business." It would request that the FCA removes its notice, it said.
The UK's Financial Conduct Authority (FCA) said in a short statement on Wednesday that Lanistar "has been providing financial services or products in the UK without our authorisation."The company is targeting millennials, particularly via Instagram ads and promos, with the "world's most secure" bank card — but it could be a
"Almost all firms and individuals offering, promoting or selling financial services or products in the UK have to be authorised by us," the FCA said. "However, some firms act without our authorisation and some knowingly run investment scams."Business Insider has contacted the FCA for further comment.
In a statement Wednesday, per the Financial Times, Lanistar said the FCA was wrong, and that it would request the scam notice be taken down.Read more: How much money nano influencers can get paid for brand sponsorships, according to 4 creators "Legal and regulatory compliance are central to Lanistar's business and we confirm that we are not providing financial services or products without the FCA's authorisation," it said.
"We will be partnering with firms that are authorised by the FCA to provide financial services or products. We are in the process of contacting the FCA to clarify the position and will be requesting that the notice is removed," it added.
In June, Lanistar partnered with Mastercard, the world's second-largest global payments processor. Mastercard said Lanistar "hopes to tap into the millennial and Generation-Z, 18-35 market, attracting customers who seek aspirational and lifestyle brands to enrich their daily lives," per the Financial Times.
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