Regulation  

FCA urges caution over WeRe Bank

FCA urges caution over WeRe Bank

The FCA has issued a warning about an organisation claiming to be a bank, but which does not appear to carry on any activities requiring authorisation by the regulator.

WeRe Bank is a UK-based venture which purports to be a people’s or community bank, and appears to have created its own currency, the RE.

Members of the Re-Movement are required to issue a promissory note to WeRe Bank to the sum of £150,000, which is payable “within a 10-year anniversary” from the time of joining.

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Members are then able to buy RE cheque books which the ‘bank’ claims can be used to pay tax, bills and mortgages.

In a statement, the City regulator said: “Although WeRe Bank refers to itself as a bank, based on the information currently available to us it does not appear to be carrying on any activities that would require it to be authorised by the FCA.

“We are concerned that vulnerable consumers may be attracted to WeRe Bank’s claim that they will be able to pay off their debts ‘for free’ using RE cheques, even though they have not had to pay any money into an account.”

The FCA has said it has received “numerous reports” of the organisation’s cheques not being accepted and urged people to proceed with caution.

Right to reply

WeRe Bank did not respond to requests before time of going to press