SPI Licensing Frame in UK
Currency and exchange market in UK are managed by special regulator. Therefore, in order to obtain an SPI license, you need to apply to the FCA, but not everything is so simple. Under each FCA license, there are a number of general provisions that apply to all firms operating in the market, as well as specific demands and permits specific to each type of license. For example, API firms must hold a certain minimum amount of cash in bank accounts, but this requirement does not apply to SPI licensees.
In this direction, regardless of the branch of the company’s operation, obtaining a licensed permit is a complex procedure filled with all sorts of nuances. That is why considering firms with SPI in UK for sale is a great option.
Licensing of commercial activities is a complex process from an organizational and legal point of view, for the successful completion of which it is necessary to clearly understand not only the formal rules and conditions for getting a license, but also the actual law enforcement practice in this area for this particular jurisdiction. Main difficulty in licensing financial activities is that each country is unique in terms of regulating this type of procedure. The specifics of legislation, the specifics of the operation of by-laws and principles of application in practice in each jurisdiction are their own.
SPI in the Kingdom: Legal Framework
In any country of the world, commercial enterprises wishing to operate in the financial market are subject to compulsory licensing. As a rule, the state issues several types of financial licenses, each of which is intended for a specific set of financial instruments. On the territory of United Kingdom, one of most popular kinds of licenses is Small Payment Institution. Key parameter that determines the need for an enterprise to obtain this particular license is the amount of gross income. However, the type of activity does not matter, which distinguishes this license from other analogues.
Annual turnover is not only requirement for organizations applying for SPI permission. Under UK law, a company must also meet the following requirements:
- The legal form is a company or a limited liability partnership (LLC or LLP).
- The central office of the company is located within British jurisdiction. Branches are managed through an officially registered representative office.
- When submitting permit application, it is necessary to disclose to regulator all data about owners and co-owners of the enterprise.
- The staff of the company should employ specialists with an impeccable reputation and no criminal record. First, this concerns the management of firm.
- There are also certain demands for registered capital size, but exact amount varies depending on the specifics of the enterprise.
The regulatory body must also be satisfied with the organization that wants to obtain a license, namely:
- services that it offers, the ability to find common ground with customers, its internal rules;
- diligence in customer service;
- security strategiesfor protection the funds of their clients;
- person verification rules;
- reducingrisk of money laundering and fraud.
If an applicant for an e-money license does not have the right staff to manage the SPI, with sufficient knowledge and expertise to run commercial structure, the FCA will reject application. A physical office is required and one of the managers must be a Kingdom resident.
