To obtain a UK API License, you must meet the following requirements:
- Initial capital requirements: In the UK, you must hold a minimum of £20,000 in order to apply for a UK API License.
- Client fund safety requirements: this can be done by implementing an insurance policy or through a segregated bank account.The charges for the safeguarding account are £3000 plus VAT apart from the original invoice issued by the bank. These charges are necessary in order for the onboarding process to be complete.
- FCA and HMRC fee: these institutions charge a fee of approximately £2000 for a UK API License
- Appoint a minimum of two directors or a director and a MLRO in the company
Apart from this, the FCA also requires that the shareholders of the establishing institution are proper and that the management body has a good reputation in the industry and the necessary qualifications to manage everything smoothly.
How to apply for a UK API License?
To obtain a UK API License, one must make a direct application to the UK financial regulator, the Financial Conduct Authority, or FCA. However, this is where we can take the burden off of your shoulders. By filling out this simple form, you can explore your options and ask any questions you may have about how we will walk you through the UK API Licensing process.
Along with the application and fee for your UK API License, you must also submit the required documentation outlined below:
- A list of financial services you plan to offer
- An outline of how you plan to govern your internal procedures
- The initial capital requirements at the level required by rules to start your business
- An outline of your plans to obtain a “safeguarding” account with a bank in the UK or EEA
- List of personnel that is responsible for your payment services along with a list of any agents authorised to act on your behalf
- Information about people who control holdings that represent at least 10% of the capital and voting rights
- An in-depth outline of your security policy
- Detailed information about control mechanisms that your institution will use to meet its obligations under the Money Laundering Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017
- Details about your institution’s procedures for incident reporting, management of sensitive data, business continuity arrangements and principles and definitions used during collection of statistical data
This page was last updated on September 7, 2022.