Authorised Payment Institution Authorisation (licence)
We can help you obtain the payment institution license in the UK or Europe and provide payment services including international money transfer, payment acquiring and processing, payment accounts, account information services, and payment initiation services.
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Why leading firms choose us as their partner.
"We chose to work with Buckingham Capital Consulting for our Authorised Payment Institution licence, and we couldn't be happier with their expertise and support throughout the process.
They have a deep understanding of the regulatory requirements for this licence and provided us with clear guidance on the application process. Their team worked closely with us, ensuring we completed the application forms accurately and met all necessary criteria.
Throughout the review process, Buckingham Capital Consulting provided valuable assistance and guidance. Their attention to detail and knowledge of the regulatory landscape helped in ensuring a smooth and successful registration.
We are truly grateful for the service and expertise we received from Buckingham Capital Consulting."
Our services for Authorised Payment Institutions
FCA licence authorisation
We can help advise on the requirements and prepare your application, including all the required policies, for a successful application in the quickest time possible. We also help manage communication with the FCA.
End-to-end set-up
From company incorporation to hiring and arranging banking facilities, we can help with everything required to set up your fintech business.
Seeking something more bespoke or not listed above? Contact us to discuss your unique requirements. With our expertise and experience in financial services, chances are we can assist you effectively.
Licence Authorisation Guide
Introduction
At Buckingham Capital Consulting, we specialise in navigating the complex regulatory landscape surrounding FCA authorisation for the Authorised Payment Institution (API) licence. Our team of experts possesses a strong understanding of the intricacies involved in obtaining and maintaining an Authorised Payment Institution licence. We stay abreast of the latest regulatory developments, providing you with the expertise needed to secure the Authorised Payment Institution licence and ensure compliance.
Our FCA authorisation service for the Authorised Payment Institution licence is designed to take the burden off your shoulders. We guide you through each step of the licencing process, from initial application to ongoing compliance requirements. By leveraging our in-depth knowledge and experience, we streamline the process, saving you valuable time and resources. With Buckingham Capital Consulting as your trusted partner, you can focus on running your business while we handle the intricacies of licencing.
Our FCA Authorisation - Authorised Payment Institution Licence Services
At Buckingham Capital Consulting, we pride ourselves on being experts in FCA authorisation for the Authorised Payment Institution licence and regulatory compliance. Our comprehensive range of services is specifically designed to assist businesses in obtaining and managing their authorisation and ensuring compliance with the FCA requirements.
Authorised Payment Institution Licence Support
Navigating the FCA authorisation for the Authorised Payment Institution process can be overwhelming. Our team of seasoned professionals has a deep understanding of the FCA's requirements and can provide you with expert guidance throughout the application process. We assist with the preparation and submission of all necessary documentation, ensuring that your application is complete, accurate, and stands the best chance of approval.
Compliance Framework Development
Compliance is at the heart of the financial services industry, and maintaining a robust compliance framework is essential for Payment Institutions. We work closely with your business to develop customised compliance frameworks tailored to your specific needs and business model. Our experts have extensive knowledge of FCA regulations, enabling us to design and implement compliance policies and procedures that meet regulatory standards and mitigate risks effectively.
Ongoing Compliance Monitoring
Regulatory compliance is not a one-time requirement but an ongoing commitment. Our team provides comprehensive compliance monitoring services to ensure that your business remains in full compliance with the FCA's requirements. We conduct regular audits and assessments, identify areas of improvement, and offer proactive solutions to mitigate any compliance gaps that may arise.
Risk Management and Internal Controls
Effective risk management is crucial for the success and longevity of any financial institution. We work closely with you to assess and mitigate risks, develop robust risk management frameworks, and establish internal control mechanisms. We help you identify potential risks, implement risk mitigation strategies, and ensure that your operations align with best practices and regulatory guidelines.
Training and Education
Keeping your staff well-informed and up-to-date on regulatory requirements is important. We offer comprehensive training and education programs tailored to client needs. Our training sessions cover various aspects of compliance, risk management, and regulatory updates, empowering clients and their teams with the knowledge and skills needed to maintain compliance and mitigate risks effectively.
Regulatory Updates and Advisory Services
The regulatory landscape is constantly evolving, with new guidelines and requirements being introduced regularly. As experts in the field, we stay up-to-date with the latest regulatory developments and provide timely advisory services to our clients. We keep you informed about changes in regulations, interpret their impact on your business, and offer strategic guidance to ensure continued compliance.
Applying for FCA Authorisation to Become an Authorised Payment Institution Licence
To apply, you will need to complete the application form, as well as supplementary forms and evidence, and submit them on the FCA's online system, Connect.
As part of your application, you will need to prepare the following information:
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Business Plan: Include financial forecasts covering a period of three years.
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Programme of Operations: Describe the payment services you intend to provide.
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Business Organisation Description: Detail the structure and management of your business.
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Initial Capital Evidence: Show that you have the required initial capital.
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Funds Safeguarding: Explain how you will safeguard users' funds.
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Compliance & Governance Arrangements: Outline your compliance framework and internal controls.
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Security Incident Procedures: Describe how you will monitor, handle, and follow up on security incidents and customer complaints.
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Sensitive Data Processes: Outline your processes for handling sensitive payment data.
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Business Continuity Measures: Provide details of your business continuity plans.
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Data Collection Methodology: Explain your methodology for collecting performance, transaction, and fraud-related data.
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Security Policy: Submit a copy of your security policy.
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Financial Crime Policy: Detail your internal controls to comply with AML/CTF obligations.
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Qualifying Holders: Provide details of shareholders holding or controlling 10% or more of the firm.
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Outsourcing Arrangements: Describe any outsourcing arrangements.
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Management Team Details: Include information about people responsible for managing your firm.
Registering Management Team Members or Directors
You need to submit individual forms for each person responsible for managing your Authorised Payment Institution. This typically includes the money laundering reporting officer and other head function holders. You must also inform the FCA of any changes to the directors or management team using the FCA's Connect system.
Registering People with Qualifying Holdings
You must submit details of any person or firm holding or controlling 10% or more of the company's capital or voting rights to the FCA. Inform the FCA of any changes to the qualifying holdings.
Registering Agents
To engage an agent for providing payment services, you must register them through the Connect platform. As the principal firm, you are responsible for ensuring your agent complies with relevant regulations. Establish suitable systems and controls to supervise their activities effectively.
Authorised Payment Institution Licence Application Fee
The application fee for the Authorised Payment Institution licence ranges from £1,500 to £5,000, depending on the size and complexity of your firm. This fee is paid at the time of submitting your application.
Timeline for Obtaining the Authorised Payment Institution Licence
The FCA is required by the European Banking Authority to assess and make a decision on an Authorised Payment Institution licence application within three months of receiving a complete application. Submitting a complete application and meeting all regulatory conditions can help avoid delays.
Services Enabled by the Authorised Payment Institution Licence
An Authorised Payment Institution licence allows you to offer various payment services, including:
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Enabling cash to be paid into or withdrawn from a payment account.
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Executing payment transactions such as direct debits, credit transfers, and card payments.
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Issuing payment instruments (e.g., credit or debit cards).
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Acquiring payment transactions.
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Money remittance.
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Account information services.
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Payment initiation services.
Relevant Laws and Regulations
The following laws and regulations apply to Authorised Payment Institutions in the UK:
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Financial Services and Markets Act 2000.
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Payment Services Directive (Directive 2015/2366).
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Directive 2009/110/EC of the European Parliament.
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Payment Services Regulations 2017.
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Payments in Euro (Credit Transfers and Direct Debits) Regulations 2012.
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Regulation (EC) No 924/2009.
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SEPA Regulation (Regulation (EU) 260/2012).
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Payment Accounts Regulations 2015.
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EU Payment Accounts Directive.
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Data Protection Act 2018.
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UK General Data Protection Regulation (UK GDPR).
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Proceeds of Crime Act 2002 (POCA).
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Terrorism Act 2000.
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Money Laundering, Terrorist Financing and Transfer of Funds 2017.
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Regulation on interchange fees for card-based payment transactions (EU) 2015/751.
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Money Laundering and Terrorist Financing Regulations 2019.
Capital Requirements for Authorised Payment Institutions
The initial capital required for an Authorised Payment Institution licence ranges from €20,000 to €125,000, depending on the payment service provided. Ongoing capital requirements are calculated using one of three methods to ensure the firm's financial stability.
Reasons for Choosing the UK for Your Authorised Payment Institutions
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World’s fifth-largest economy.
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Low corporation tax.
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Low business costs.
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Business tax relief of up to 230% on research and development.
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Access to a highly-skilled workforce.
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Strong fintech growth and investment.
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Strong reputation in financial services.
For further information, consult the FCA resources:
Conclusion
Obtaining FCA authorisation for an Authorised Payment Institution can be complex, but with careful preparation and understanding of the requirements, you can navigate it successfully. Buckingham Capital Consulting is here to assist you at every step, ensuring your application is thorough and compliant with all regulatory standards.