Fintech regulation in England 2021
The supervisory body that regulates fintech in England in 2021 is the FCA. Many areas related to financial technology require a license - accepting deposits, working with investments, organizing investment transactions, consulting, etc. To learn more about developments in this area, contact our experts at IT-OFFSHORE.
Regulatory features
Fintech means financial innovation. This may be the name given to companies that specialize in the creation and implementation of financial products and services. Financial innovation is actively used in blockchain, banking, exchanges, etc.
Fintech in England in 2021 is well developed, with a significant number of startups and foreign companies registered in the territory. The fintech sector accounts for more than half of all venture capital investment in England.
The main regulatory act is the Financial Services and Markets Act. Some changes have been made to it. The FCA's ban on the distribution of exchange-traded notes was introduced. Liability is presumed for engaging in uncoordinated activities.
The pros of the market
Most of the startups in the U.K. belong to the fintech sector. This area is suitable for financial technology work because it offers a favorable environment for the development and promotion of startups.
Other advantages:
- It is possible to get a license;
- It's realistic to attract investments;
- There are no conditions concerning the residency of the participants;
- Small startup expenses;
- Easy enough to maintain the company;
- Reliability of the jurisdiction.
The territory has a loyal tax policy, and there are no currency controls. The infrastructure is well-developed, and the economic system is stable. There are a lot of highly qualified personnel in the labor market.
Nuances of opening
The country supports the opening of startups related to financial technology and various projects. There are visas for non-residents to attract entrepreneurs. There is also the possibility of opening a company remotely.
It is necessary to prepare a name for the company and choose a suitable legal form. It is required to collect documents - copy of foreign passport, corporate information, and an application that is submitted to the Registration Chamber.
Our specialists will help to analyze the market and choose a suitable taxation system, as well as register the company with a bank account and obtain a visa. For a business to be profitable, it is important to monitor adjustments in laws, analyze investments and develop further ways of advancement.
