FAC Payment Service faqs
Top 10 Payment Services FAQs
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FCA Payment Services Authorisation is required for businesses that wish to provide regulated payment services in the UK. This includes firms operating as Authorised Payment Institutions (APIs) or Small Payment Institutions (SPIs).
Any business that intends to provide payment services, such as money remittance, payment initiation services (PIS), or account information services (AIS), must apply for FCA authorisation. This applies to both UK-based and non-UK businesses wanting to operate in the UK market.
To become an API, a firm must meet requirements including holding adequate initial capital, having a UK-based head office and registered office, maintaining robust governance and risk management procedures, and ensuring that key personnel are fit and proper.
An SPI typically handles lower transaction volumes (not exceeding €3 million per month) and has fewer regulatory requirements compared to an API. SPIs are not allowed to provide PIS or AIS services and have simplified compliance obligations.
An SPI typically handles lower transaction volumes (not exceeding €3 million per month) and has fewer regulatory requirements compared to an API. SPIs are not allowed to provide PIS or AIS services and have simplified compliance obligations.
The application process involves submitting a detailed application through the FCA's Connect system, which includes a business plan, financial forecasts, governance structures, and evidence of compliance with relevant regulations.
Essential documents include a programme of operations, business plan, financial projections, details of key personnel, risk management policies, safeguarding measures for client funds, and proof of compliance with money laundering regulations.
Ongoing obligations include regular reporting to the FCA, maintaining adequate capital and liquidity, adhering to anti-money laundering regulations, and ensuring continuous compliance with all relevant regulatory requirements.
Non-compliance can result in enforcement actions by the FCA, including fines, restrictions on business activities, or revocation of authorisation. It is crucial for firms to maintain strict adherence to regulatory requirements.
Alumni Compliance provides expert guidance throughout the FCA authorisation process. Our team of former FCA personnel offers tailored support in preparing applications, ensuring compliance, and managing ongoing regulatory obligations to help businesses secure and maintain their authorisation.