Here is more information on the process for obtaining a small payments institution license in the UK:
- Determine if you are eligible: To be eligible to apply for a small payments institution license, you must be a legal person or partnership that is based in the UK. You must also be able to demonstrate that you have the necessary skills and expertise to carry out the regulated activities.
- Prepare your application: To apply for a small payments institution license, you will need to complete the FCA’s small payment institution application form and provide supporting documentation, including financial and business plans and evidence of your suitability to carry out the regulated activities.
- Submit your application: Once you have completed the application form and gathered all the necessary documentation, you can submit your application to the FCA. You will also need to pay a fee to cover the cost of processing your application.
- Wait for a decision: The FCA will review your application and make a decision on whether to grant you a small payments institution license. This process can take several months.
As part of the application process, the FCA will assess whether you meet the following requirements:
- Financial resources: You must have adequate financial resources to carry out the regulated activities. This may include demonstrating that you have sufficient capital and reserves to cover any potential losses.
- Systems and controls: You must have systems and controls in place to manage the risks associated with the regulated activities. This may include having policies and procedures in place to prevent money laundering and terrorist financing, as well as having robust IT systems to manage and secure financial transactions.
- Suitability: You must demonstrate that you are suitable to carry out the regulated activities. This may involve providing information on your background, experience, and any relevant qualifications or professional accreditations.
If the FCA grants you a small payments institution license, you will need to meet ongoing regulatory requirements, including reporting and disclosure obligations and compliance with the FCA’s rules and guidance.
I hope this information is helpful! Let me know if you have any further questions.
This page was last updated on January 3, 2023.