Attention Firms Passporting into or out of the United Kingdom
Brexit has happened and we’re not happy about it either.
The UK has left the EU and passporting is gone!
The trade agreement negotiated with the EU did not include passporting rights for UK firms. Therefore, any UK firm that has been providing services to EU customers must cease with immediate effect!
Click the appropriate link for information on what this means for you
EU firms who are passporting into the UK
Firms with temporary permissions
If you have applied for the temporary permission, then you will be able to providing services into the UK for up to 3 years without needing a UK based Payment Service or Electronic Money Licence. Essentially, it will be business as usual.
However, you will need to notify the FCA of your future intentions. You have a maximum of 1 year to outline your plans and present them to the FCA. Failure to do so could result in you losing your temporary permission.
If they haven’t done so already, the FCA will be contacting you to ask for your future plans and provide you with a launch window, which will be when they expect to receive an application from you.
If you decide to apply for a full UK licence, you will need to establish a UK based company and recruit local managers before authorisation can be granted.
AuthoriPay can help you navigate all the requirements of the Temporary Permissions Regime to ensure you can continue to provide services in the UK unabated.
For more information see our Temporary Permissions section
AuthoriPay can help you through this. Contact us for more information
Firms without temporary permissions
If you haven’t applied for temporary permissions, it is now too late. You will have lost access to the UK market. If you wish to continue targeting the UK market you can make use of our innovative fast track, or ultra-fast track licence service
Gateway to Europe
For UK firms who wish to target European customers, Authoripay has many contacts in the EU, both regulators and authorised firms, and is able to help you manage the process and choose the best way forward
Apply for a licence in an EU country
This would entail setting up an entity in the EU and applying for a licence from one of their regulators. Although the process can be challenging, you will have more control of your product.
To assist you with this, AuthoriPay has conducted extensive research on which jurisdictions are best, focussing on key areas such as cost, timeframes and reputation and has forged a number or relationships with regulators across the EU. AuthoriPay has tailor-made solutions to help firms obtain an EU licence; from incorporating an EU entity and recruiting local managers to completing an application pack and liaising with the local regulator.
Whichever jurisdiction you choose, AuthoriPay has the necessary skills and expertise to help
Become an Agent of an existing EU Authorised Payment Service, or Electronic Money firm
The firm would not need to worry about having a full Licence. This is a quicker method as firms could be registered as an agent in a matter of weeks. However, it would mean having less control and adhering to the specific rules of the Authorised Firm.
AuthoriPay has partnered with a number of authorised firms across the EU, who would be willing to onboard UK firms
AuthoriPay can help you through this. Contact us for more information
Temporary Permissions
EU firms that have applied for temporary permissions in the UK now have a maximum of 3 years to continue providing their services to UK customers without having a UK based licence.
However, firms need to be aware that throughout these 3 years, the UK Financial Conduct Authority will expect a number of things from them
Initial contact
Firms should expect to be contacted by the FCA in the coming weeks to be reminded about key obligations whilst in TPR and will be asked to start thinking about being fully authorised in the UK.
The FCA will also undertake data gathering requests and financial resilience surveys as well as contacting branches for their fee tariff data.
Throughout this initial contact phase, the FCA will remind firms of their obligations to be aware of the relevant rules, and to get distinct contact points for compliance in certain areas; for example complaints handling
AuthoriPay has a support service, which can help firms manage their new relationship with the FCA.
Contact us for more details
Deciding what to do next:
Firms will also be expected to have a long term plan of action for remaining in the UK. The FCA will likely want to review this in the near future.
Firms need to decide what they are going to do when the temporary permission ends. essentially there are 2 options
Option 1: Apply for a UK licence
This would entail setting up a UK establishment (with UK based senior management) and undergoing a complete application process with the FCA for a full licence. AuthoriPay are experts in UK authorisation and will be able to guide you through the process.
Launch windows
Firms who decide to go for a full UK licence will not simply be able to choose when they would like to apply. The FCA will provide firms with deadlines for when their full applications must be received, known as launch windows. Firms that miss these deadlines may be removed from the temporary permission regime.
Application processes are not quick and you are advised to start preparing the application imminently to avoid missing the deadline.
Option 2: Become an Agent of an existing UK Authorised Payment Service, or Electronic Money firm
The company would still need to have a UK based entity, but it would not need to worry about having a full UK Licence. It is a quicker method as firms could be registered as an agent in a matter of weeks, however, it would mean having less control and adhering to the specific rules of the UK Authorised Firm. AuthoriPay has partnered with a range of principal firms who would be willing to onboard EU firms looking to continue trading in the UK
Get in touch
AuthoriPay Ltd, Milton Hall, Ely Road, Cambridge, CB24 6WZ.