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Benefits of obtaining a license in England:
Accordingly, in order to provide payment services in the UK legally, you must register a UK company by applying to the FCA and obtain a PI license.
It is necessary to mention that the process of applying for an API license is much more complicated than obtaining an SPI license. An API license requires a large volume of documentation, including:
This is a rather complicated procedure, requiring proper preparation by both the company applying for a license and the law company, which acts as an assistant.
At the same time, what is difficult for some, another serves as a powerful incentive for laying a solid foundation for further growth, because of a substantial increase in the efficiency of processes, minimizing risks, reducing costs and much more.
So, before applying for an API license in the UK, you must fulfill a list of 12 requirements, that among other things, includes the requirement for an applicant company to be registered in the UK , and have a head office in the UK.
There is a number of general conditions that apply to companies, as well as a number of special permissions applicable to each of the FCA licenses for payment institutions. For example, a company that was able to obtain an API license need to maintain a minimum level of share capital. At the same time, SPI license holders are not required to fulfill this condition.
According to Appendix 3, paragraph 1 (2), PSR depend on the services provided by the licensee:
It is expediently to go through a procedure of obtaining a license for the provision of payment services in the UK in advance, since the terms can be 6-12 months.
If the estimated average turnover on payment transactions does not exceed 3 million euros per month, the applicant company can apply for a small payment license in the UK. It will be cheaper, and the conditions for receiving this license are simpler than for the API. The application will require much less related information, and the SPI is not subject to PSR prudential requirements.
It is worth noting that all companies intending to provide payment services must also receive a money transmitter license from HMRC.
An application for an API license must contain the information specified in Appendix 2, PSR. Among other things, the company applying for a payment system license in the UK must specify:
It is worth noting that the FCA may require the applicant to provide additional information that it reasonably considers necessary.
Payment institutions registered with FCA must:
The last paragraph refers to any changes in the company, for example, a change in the registered name, contact details, persons who are responsible for payment services, etc.
It is necessary to clarify that this article is published for informational purposes only and should not be construed as legal advice or as a call for specific action. As you can already see, obtaining a PI-license in the UK requires a complex approach, and for successful preparation it would be advisable to ask for reliable legal support.
In addition, our specialists also provide other related legal services.
You can learn more details about our services, as well as order legal advice on obtaining a license for a payment system in the UK, using the feedback form, or by calling our office right now through the contacts listed below.
The information outlined in the article is actual at the time of its publication.
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