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News

The FCA issues warning to banks over financial crime and AML failings

The FCA issues warning to banks over financial crime and AML failings

In a recent letter, the Financial Conduct Authority has warned retail banks about continuing weaknesses
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Operational Resilience

New FCA Consultation on Operational Resilience

Initiatives for operational resilience help businesses with risk appetite and risk tolerance, preparing them for
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What is a Compliance Consultant? | A Neopay Guide

Compliance is a key issue for many money issues and payment institutions. Companies often have
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FCA says cryptocurrency firms are not meeting anti-money laundering rules

In a recent update from the Financial Conduct Authority, the regulator has stated that a
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FCA Compliance requirements

7 Crucial Requirements for FCA Compliance and How You Can Prepare Your Application

FCA compliance and authorisation is fundamental to any financial services firm operating in the UK.
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FCA proposes stronger protection for consumers in financial markets

FCA proposes stronger protection for consumers in financial markets

The Financial Conduct Authority has recently set out plans for a new consumer duty, which
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FCA plans to reshape itself in a post pandemic world

The FCA plans to reshape itself in a post pandemic world

The year 2020 proved to be an extremely challenging time for British financial services, with
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Trade based money laundering

New report published on trade-based money laundering risk indicators

In an effort to help organisations identify trade-based money laundering (TBML), the Financial Action Task
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Global spend on financial crime compliance at financial institutions reaches $213.9 billion

The Future of Fintech in the U.K. – The Kalifa Review

Over the past decade the UK has become a fintech hub, emerging as a successful
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The FCA sets out approach to international firms

As more and more international firms are expected to be looking to become authorised and
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Resources

The registration process for SEMIs is cheaper and more straightforward than authorisation for Authorised E-Money Institutions (AEMIs), however there are additional restrictions placed on the activities of SEMIs.

The FCA would require similar information to an AEMI application but in less detail and would pay close attention to the skills and experience of the business’ senior team.

  • A SEMI’s average outstanding e-money must never exceed €5 million.
  • There are no passporting rights. SEMI’s products can only be offered within the UK.
  • SEMIs can provide unrelated payment services but only if the average monthly total of payment transactions does not exceed €3 million, on a rolling 12 month basis.

To determine their capital requirements, SEMIs are split into two categories. For those whose average outstanding e-money is less than €500,000 and who do not predict their average to reach that point, there is no minimum capital requirement.

For those whose average falls above that limit, there is a minimum capital requirement of 2% of their average outstanding e-money.

The FCA charge application fees as well as on-going supervision fees for authorised entities.

In addition, there are minimum requirements for on-going capital for authorised firms, although not all SEMIs will be required to meet minimum capital requirements (see above).