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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 (API) 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.
Our People
Our team of regulatory and compliance experts boasts diverse backgrounds spanning various sectors, providing a holistic understanding of our clients' challenges. With our service being led by seasoned professionals, you'll have direct access to senior experts, often at the director level, ensuring personalised attention. Combining robust regulatory knowledge with commercial insight, our team delves deep into your business to tailor unique solutions specifically suited to your needs.
Authorised Payment Institution Guide
Introduction
At Buckingham Capital Consulting, we specialise in navigating the complex regulatory landscape surrounding FCA authorisation for the API / Authorised Payment Institution licence. Our team of experts possess a strong understanding of the intricacies involved in obtaining and maintaining an API licence. We are adept at staying abreast of the latest regulatory developments and can provide with the expertise needed to obtain the API licence and ensure compliance.
Our FCA authorisation service for the API 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 what you do best running your business while we handle the intricacies of licencing.
Our FCA Authorisation - Authorised Payment Institution (API) Services
At Buckingham Capital Consulting, we pride ourselves on being experts in FCA authorisation for the Authorised Payment Institution (API) and regulatory compliance. Our comprehensive range of services are specifically designed to assist businesses in obtaining and managing their authorisation and, ensuring compliance with the FCA requirements.
Authorised Payment Institution FCA authorisation Application Support
Navigating the FCA authorisation for the Authorised Payment Institution (API) 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 can 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 can provide comprehensive compliance monitoring services to ensure that your business remains in full compliance with the FCA's requirements. We can 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 can work closely with you to assess and mitigate risks, develop robust risk management frameworks, and establish internal control mechanisms. We can 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 can 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 (API)
To apply, you will be required to complete the application form, as well as the supplementary forms and evidence and submit them on the FCA's online system, namely, Connect.
As part of your application, you will be required to prepare the following information:
1. Business plan, including financial forecasts for a period covering 3 years
2. A programme of operations
3. A description of your business organisation
4. Evidence of your initial capital.
5. Details of how you will safeguard the funds of your users
6. Compliance & governance arrangements and internal controls
7. Procedure for monitoring, handling, and following up on security incidents and security-related customer complaints
8. Processes for filing, monitoring, tracking and restricting access to sensitive payment data
9 .Business continuity measures
10. Details on your data collection methodology concerning performance, transaction and fraud-related data.
11. A copy of your security policy
12. Your financial crime policy, entailing your internal control mechanisms to comply with anti-money laundering and countering-terrorist financing (AML/CTF obligations)
13. Details of your qualifying holders (shareholders holding or controlling 10% or more in the applicant firm)
14. Details of any outsourcing arrangements
15. Details of people responsible for the management of your firm
Registering management team members or directors
You will need to submit individual forms for each person responsible for the management of your Authorised Payment Institution (API). This typically includes the money laundering reporting officer and other head of function holders.
You will also be required to inform the FCA of any changes to the directors or people responsible for the management of your firm. You may do so, using the FCA's Connect system here.
Registering people with qualifying holdings
You will be required to submit the details of any person or firm holding or controlling 10% or more capital or voting rights in the company to the FCA. You must also inform the FCA of any changes to the qualifying holdings.
Registering agents
In order to engage an agent for providing payment services, it is mandatory to register them through the Connect platform.
Having agents will make you a principal firm. As the principal entity, it will be your responsibility to ensure that your agent acts in compliance with relevant regulations. Therefore, it is crucial to establish suitable systems and controls to effectively supervise their activities. By doing so, you can effectively oversee and take accountability for any actions or omissions carried out by your appointed agent.
For more information on notifying the FCA about changes to your agents, you can use this link
Authorised Payment Institution (API) application fee
The application fee for the Payment Institution (API) licence application is £1,500-5,000. The fee is paid at the time of submitting your application.
How long it take to obtain the Authorised Payment institution (API) licence with the FCA
The Financial Conduct Authority is required by the European Banking Authority to assess and make a decision on a Payment Institution (API) licence application within three months of receiving a complete application.
You are required to submit specific information, as specified in schedule 1 of the PSRs. We can help ensure that you avoid any delays by preparing and submitting a complete application and making sure that you meet all the regulatory conditions and requirements.
Authorised Payment Institution (API) licence services
An Authorised Payment Institution (API) licence enables the licence holder to offer a number of services:
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services enabling cash to be paid into or withdrawn from a payment account and all of the operations required for operating a payment account
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execution of payment transactions - such as direct debits, credit transfers and card payments
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issuing of payment instruments (for example 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
Authorised Payment Institution (API) laws and regulations
The following laws and regulations are applicable to Authorised Payment Institutions in the UK:
- The Financial Services and Markets Act 2000
- The Payment Service Directive (Directive 2015/2366)
- Directive 2009/110/EC of the European Parliament
- The Payment Service Regulations 2017
- Payments in Euro (Credit Transfers and Direct Debits) Regulations 2012
- The SEPA Regulation (Regulation (EU) 260/2012
- The Payment Accounts Regulations 2015
- EU Payment Accounts Directive
- Guide to the UK General Data Protection Regulation (UK GDPR)
- Proceeds of Crime Act 2002 (POCA)
- Money Laundering, Terrorist Financing and Transfer of Funds 2017
- Regulation on interchange fees for card-based payment transactions (EU) 2015/751
- The Money Laundering and Terrorist Financing Regulations 2019
Authorised Payment Institution (API) capital requirements
The initial capital required for an Authorised Payment Institution (API) licence is €20,000-125,000 depending on the payment service you wish to provide.
The ongoing capital required for an Authorised Payment Institution (API) licence is calculated using one of three methods.
Authorised Payment Institution (API) key requirements
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A minimum capital requirement to establish an Authorised Payment Institution (API) business.
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The requirement to safeguard client funds either with a segregated client bank account or with an insurance policy.
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The management body of the Authorised Payment Institution (API) must be of good repute and possess the relevant qualifications and experience to perform their duties.
Reasons for choosing the UK for your Authorised Payment Institution (API)
- World’s fifth-largest economy
- Low corporation tax
- Low business costs
- Business tax relief of up to 230% on research and development
- Access to a highly-skilled workforce
- Strong fintech growth and investment
- Strong reputation in financial services