Several types of non-banking firms whose main professional scope is provision of financial services exist. Operation of such enterprises and all deals performed by them as professional services are monitored by the state and laws of the jurisdiction in which organizations function. To conduct such activities officially, an appropriate permit from the regulator is required. The PI license in the UK is one of these permits and below we will discuss the main aspects that it controls and specifics of getting it.
Body implementing control over activities of payment establishments and is in charge of issuing permissions is FCA. Globally, this body has been recognized as one of the most loyal, responsive and indulgent regulatory structures in terms of general requirements for licensees. These normative points are apparently defined: it allows organizations to avoid any variation and understand accurately what actions they should take.
Payment Institution license in UK covers several permits for establishments functioning in provision of financial-services, particularly:
- MSB and API-license;
- permission for small organizations;
- permits giving the rights to act as a provider of general payment-services, etc.
FCA enables each firm that intends to become a participant in this market to develop its own commercial structure on favorable terms.
UK PI license: Features of Action
With this permission, payment-services providers are formally approved to offer the following:
- placing monetary means on accounts and performing relevant activities necessary for accounts functioning;
- funds withdrawal from accounts;
- implementation of payment-transactions, incl. means transfer;
- direct one-time and permanent debit-services;
- performance of operations needed for credit-lines;
- issuance of payment-tools;
- acquiring;
- payments initiation;
- giving any necessary data about open and active accounts.
Payment institution license in UK gives businesspersons opportunity to perform some additional deals, particularly, currency-exchange, funds keeping, data-processing and ensuring full functioning of payment-systems.
UK PI Licenses: Key Privileges
London is largest and most influential worldwide center of financial sphere. This’s due to the fact this jurisdiction sets many advantages and privileges for firms operating in FinTech-industry.
- Loyal regulatory body. FCA provided speedy and least time-consuming procedure of reviewing documentation and authorizing a business in comparison with several states.
- Favorable tax regime. Dividends received by British shareholders from their companies are not subject to taxation.
- The UK demonstrates and maintains rapid and stable growth in the field of FinTech, which makes it attractive to invest in such projects.
- Favorable financial environment and comprehensive endorsement of governmental apparatus. Particularly, the UK has developed a specific plan for the development of FinTech and the optimization of the tax regime.
Types of PI licenses in the UK
There are several main types of PI licenses available in the jurisdiction.
- MSB is an operator offering currency exchanges, monetary means transfers, including cash equivalents, cashing customer checks, and more.
- Small payment establishment. Monthly-turnover of monetary means accepted and circulated doesn’t exceed 3 mln EUR. In addition, such organizations cannot initiate payments and give information on accounts.
- PISP – payment-initiation services. Thus, this permission may be a separate additional permission.
- API – providing a complete spectrum of payment-services. Initial capital for such firms is 125 thousand EUR. In addition, insurance is needed for occupational deals of organizations.
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