Eternity Law International News SEMI license in UK

SEMI license in UK

Published:
February 9, 2023

If you are interested in acquiring a SEMI license in the UK, we will guide you across the entire procedure and provide you with step-by-step support. A SEMI permission allows a financial establishment to supply authorized service exclusively in the United Kingdom. Thus, to get SEMI license in UK could be an efficient start of your business-activities.

Our firm offers highly-qualified support in sale of Small Electronic Money issuer license in UK. We’ll be your strong partners in this way.

Overview of the UK fintech market

The Financial Technology (FinTech) sector is revolutionizing the financial services industry by simplifying transactions, lowering costs, creating opportunities for innovation, empowering customers, and improving security. The UK is the second largest fintech investment destination after the US. The United Kingdom continues to be the top destination for fintech in Europe, with investment in the sector growing by $9.1 billion in the first half of this year, up 24 percent from the same period in 2021. of more than 1,600 firms and is projected to double by 2030. The sector contributes around US$13.4bn (£11bn) to the UK economy and creates over 76,000 jobs.

Benefits of achieving a SEMI license in the UK

Opportunity to get SEMI license in UK has the following benefits:

  • Inexpensive maintenance fees;
  • There is no minimum account balance;
  • Remote identification of the client, the possibility of opening an account for the company without a client’s visit;
  • Remote account management;
  • Account opening is feasible in a short period of time (up to 7 days);
  • Unique IBAN;
  • High degree of security.

UK SEMI restrictions

To carry out business as such a structure and obtain SEMI license in UK, the company must be enrolled with the FCA. Only a legal entity can be registered as a SEMI.

However, there are certain restrictions associated with operating a company with a SEMI license:

  • for a small e-money license in the UK average restrictions for month on the issuance of e-money is 5 million euros in total;
  • the SEMI license has the same limits for the monthly number of transfers for payment services – € 3 million.

To Obtain SEMI License in UK: Initial Capital Requirements

The start-up fund demands of a business-company with a UK Small Electronic Money issuer license depend on the average amount of owing e-money that the company generates or plans to issue. If the average amount of e-money in circulation is equal to or greater than 500,000 euros, then there is an obligation to support the initial capital at a level of at least 2% of the average quantity of money in circulation. Where an request applying for the option to get Small Electronic Money issuer license in UK does not have sufficient business history, projections in the business plan may be used to determine initial demand for funds, after any adjustments the FCA may require during the registration process.

General requirements for UK Small Electronic Money Issuer License

The demand for the option to obtain Small Electronic Money issuer license in UK is to protect client funds either with a separate client bank account or with an insurance policy.

  1. The SEMI license management authority must be in good standing and have the appropriate qualifications and experience to carry out its duties.
  2. Current capital requirements for an SEMI is calculated as 2% of the firm’s issued e-money in circulation.

Other conditions must be met to get Small Electronic Money issuer license in UK as set by the FCA.

  1. You need to be a legal entity.
  2. You have reliable control mechanisms.
  3. You have a business plan.
  4. You have taken adequate steps to protect user funds (our banking partners can help you open a Security Account to meet this demand).
  5. You have adequate damages coverage.
  6. Directors must be in good standing and possess the necessary relevant skills.
  7. No manager should be guilted of money laundering.
  8. To  obtain Small Electronic Money issuer license in UK head office must be in the UK.
  9. You must comply with  anti money laundering laws.
  10. If a request is closely related to another person, such ties must not interfere with the FCA’s effective oversight of the business.

Our team is good in sale of Small Electronic Money issuer license in UK. We’ll give fully-covering assistance regarding any issues.

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