Procedure to become a UK Electronic Money Institution

In this article, we will look at the procedure to become an electronic money institution (EMI), in the UK. In the UK, The Financial Conduct Authority is the financial regulator for regulating electronic money institutions. If you wish to become an electronic money institution in the UK then you must prepare and submit an electronic money institution application in the UK to the Financial Conduct Authority. Below we will look at the process of becoming an electronic money institution in the UK as well as discussing the key requirements.



The UK regulator – Financial Conduct Authority


The Financial Conduct Authority in the UK regulates electronic money institutions in the UK.

If you wish to become an electronic money institution in the UK and provide electronic money, such as prepaid cards or electronic wallets, you will be required to prepare and submit an application to the Financial Conduct Authority for the Electronic Money Institution license.



EMI E-money license options


You have two options with regards to becoming an electronic money institution in the UK.


Option 1 – Small electronic money institution license

Key features of becoming a small electronic money institution in the UK:


- Application fee of £1,000,

- Cannot issue more than €5m e-money and €3m in turnover for payment services, per month,

- Cannot passport into Europe.


Option 2 – Authorised electronic money institution license

Key features of becoming an authorised electronic money institution in the UK:


- Application fee of £5,000,

- No turnover restrictions in issuing e-money,

- Able to passport into Europe.