For many Payment Service Providers (PSPs), the next stage in their business growth is becoming an e-money institution (EMI). The application process to become authorised and regulated by the Financial Conduct Authority (FCA) is stringent, complex and time-consuming.
The process will become even more demanding as the FCA look to overhaul the Electronic Money Regulations and Payment Services Regulations (EMRs and PSRs) for safeguarding relevant funds. They plan to do this by aligning EMRs with the Client Asset Sourcebook, adding a new chapter: CASS 15.
We’re specialists in guiding businesses through the challenges of FCA authorisation: from overcoming pitfalls at the application stage to ensuring your ongoing compliance as an FCA-regulated entity.
If you’re not yet ready to apply for a licence, we can connect you to trusted e-money distributors (EMDs).
By working closely with regulatory advisers and solicitors who also specialise in financial services and FCA regulations, we’ll give you extensive support throughout your fintech’s journey.
Our services for EMIs include:
- Financial forecasting and modelling
- Management accounts and bookkeeping
- Statutory audits and safeguarding audits
- Statutory financial accounts
- Risk management advice
- Tax advice, including the Enterprise Investment Scheme (EIS), VAT and R&D tax credit rules
By reducing the stress around regulatory compliance, we can free you to focus on innovating, helping your customers and securing your EMI’s future.
The audit requirement for EMIs and other group companies
Most EMIs are aware of the statutory audit requirement and adhere to it. In our experience, it’s less widely known that this audit requirement extends to all other group companies (if applicable).
Despite EMRs being silent on this audit requirement, it is outlined in the Companies Act 2006. The presence of an EMI within a group makes the group ‘ineligible’, meaning that the small companies exemption can’t be applied to any company within the group.
Our specialist pod of financial services auditors have years of experience auditing EMIs. We can ensure that you meet your audit filing requirements, whether for a single entity or consolidated accounts.
