EMI License in the UK: Conditions, Terms and Registration
The UK EMI licence, issued by the Financial Conduct Authority (FCA), plays a key role in the development of the fintech sector. Since its introduction under the Electronic Money Regulations 2011, it allows companies to issue electronic money and provide payment services. Today, the UK has more EMI licences than all EU countries combined, confirming its importance as a financial centre.
EMI Authority in the UK
The EMI licence includes authority under two sets of regulations:
- Electronic Money Regulations 2011 (EMRs): issuance and redemption of electronic money, mandatory segregation of client funds to protect users.
- Payment Services Regulations 2017 (PSRs): a wide range of payment services: cash deposits and withdrawals, account transactions (including direct debits, credit transfers, card transactions), issuance of payment instruments, acquiring, transfers without opening an account. AISP and PISP licenses are also available for data aggregation and payment initiation.
Small EMI (SEMI) License
For smaller companies, a simplified form of the license is provided - SEMI. It is valid only within the UK and is suitable for startups that want to quickly enter the market.
Key conditions:
- issuance of less than €5 million of electronic money (on average over six months),
- transactions up to €3 million per month,
- no mandatory capital and audited financial statements.
Exceeding the established limits requires transition to AEMI status.
Timeframe for obtaining a license
The licensing process takes on average up to 12 months and includes several stages:
- appointment of an FCA officer (up to 21 days),
- application review (3-12 months),
- preparation of documents (6-8 weeks),
- opening of a safeguarded account (6-9 weeks).
AEMI Requirements
To obtain a full license, you must register a legal entity in the UK, demonstrate a minimum capital of €350,000 (recommended €500,000), appoint at least 4 residents with experience, confirm the origin of funds, issue a safeguarding account or insurance, and prepare a full package of documents - a business plan, AML policy, forecasts, IT assessment.
Preparation stages
- Stage one: business plan, activity program, compliance policies, management structure.
- Stage two: confirmation of capital, shareholder information, business wind-down plans, financial forecasts, AML/CTF policies.
- Stage three: Consumer Duty policy, risk management, complaints policy, confirmation of local presence, filing an FCA form via the Connect system.
Result
An EMI or SEMI license in the UK is a way to enter one of the largest electronic payment markets. It opens up wide opportunities, but requires serious preparation and compliance with strict FCA requirements.
IT-OFFSHORE will help you complete all the documentation, prepare a business plan, comply with the regulator's requirements and go through the process of obtaining an EMI license on a turnkey basis.
