SPI License in England in 2020: Requirements

SPI License in England in 2020: Requirements

There are two types of licenses for financial activities in the UK: API (for authorized foreign exchange institutions) and SPI (for small foreign exchange institutions). An SPI license in England in 2020 is required for all companies whose monthly turnover does not exceed €3,000,000. It is issued by the Financial Services Authority (FCA).

Why is it worth getting a licence to conduct foreign exchange transactions in the UK?

  • The license covers all European countries;
  • The Small Payment Institution license gives its holders the right to conduct operations with cryptocurrency;
  • It usually takes no more than 3 months from the time you apply for an SPI for the license to be issued;
  • The type of financial activity is not decisive, API and SPI are universal;
  • The United Kingdom is considered one of the most developed and progressive platforms for foreign exchange transactions.

Application for a Small Payment Institution license

To apply for an SPI properly, you will need the assistance of qualified specialists. IT-OFFSHORE specialists can not only take on the responsibility of completing the necessary documentation, but also monitor the entire process of obtaining a license, significantly reducing the cost of registration.

Only a company that operates in strict compliance with the Anti Money Laundering, Terrorist Financing and Money Transfer Act (MLR 2017) and meets the requirements of the Financial Services Authority (FCA) can obtain an SPI license in England.

List of mandatory requirements for a company applying for an SPI

  • The company's financial turnover should be less than 3,000,000 euros;
  • The company's headquarters and at least one representative office must be located in the UK;
  • There must be at least one resident of the United Kingdom among the top managers of the company;
  • The founders, beneficial owners and top managers must have an ideal reputation. Their names cannot be implicated in any financial fraud or law violation cases;
  • The preferred forms of ownership are "limited liability company" (LLC) or Partnership.

The FCA should have no doubt about the competence of the founders of the firm  as well as their sufficient level of education and experience.

Documents and cost of SPI registration

The state fee for obtaining a Small Payment Institution license is £500 and it is not refundable even if the FCA refuses to issue a license. The list of documents required to be submitted includes: an application, information on the main activities of the company, declarations of conformity, special questionnaires filled out individually for each founder, information on payment for shares in the authorized capital, and finally the founding and agency agreements.

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