COREDO > Financial Licence in the United Kingdom

Financial Licence in the United Kingdom

The United Kingdom is one of the world’s leading financial jurisdictions with a highly developed fintech sector and an independent regulatory framework following Brexit. Financial Conduct Authority (FCA) authorisation covers a wide range of financial services — from payment solutions and electronic money to investment and brokerage activities — and is widely recognised as a global quality standard.

Since 2016, COREDO has been assisting clients with obtaining FCA authorisation, providing full support — from business model development to successful completion of the regulatory process.

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Cost of the service
from 100 000 EUR

Regulatory Framework

After Brexit, the United Kingdom transitioned to its own regulatory framework, which largely reflects European legislation principles but is regulated independently.

Key regulatory acts:

Payment Services Regulations 2017 (PSRs 2017) — regulate payment services and payment institution activities (equivalent to European PSD2).
Electronic Money Regulations 2011 (EMRs 2011) — regulate electronic money issuance and EMI activities (equivalent to EMD2).
Financial Services and Markets Act 2000 (FSMA 2000) — foundational law on financial services covering investment, banking and insurance activities.
UK MiFID (onshored) — British version of MiFID II regulating investment services following EU exit.
Money Laundering Regulations 2017 (as amended) — AML/CFT requirements for all authorized firms.

The primary regulator is Financial Conduct Authority (FCA) (fca.org.uk). Banking activities involving deposit-taking are additionally regulated by the Prudential Regulation Authority (PRA), which is part of the Bank of England.

Types of Financial Licences

The United Kingdom offers the following principal types of financial authorization:

Licence Type	Description	Min. Capital	Timeline
AEMI (Authorised Electronic Money Institution)	Issue electronic money, payment services	EUR 350,000	6–12 months
Small EMI	Simplified registration for small e-money issuers (up to EUR 5m outstanding)	EUR 350,000	3–6 months
API (Authorised Payment Institution)	Full spectrum of payment services	GBP 20,000–GBP 125,000	6–12 months
Small Payment Institution (SPI)	Limited payment services (up to EUR 3m/month)	No requirement	3–6 months
Investment Firm (MiFID)	Investment services, asset management, brokerage activity	GBP 50,000–GBP 730,000	6–18 months
AIFM (Alternative Investment Fund Manager)	Management of alternative funds	GBP 125,000	6–12 months
Banking Licence	Deposit-taking, lending	GBP 5,000,000+	12–24 months

Important: Minimum capital levels are regulatory requirements from FCA. COREDO’s service fees for authorization support are listed in a separate section below.

For most fintech companies, payment systems and electronic wallet providers, AEMI and API authorizations are most sought-after, providing the right to offer payment services within the United Kingdom.

Jurisdiction Advantages

The United Kingdom remains one of the most attractive jurisdictions for financial business for several reasons.

Global recognition.

FCA authorization is perceived by banks, partners and clients worldwide as a guarantee of reliability. Companies with FCA licences can significantly more easily open correspondent accounts and establish international partnerships.

Developed market.

The United Kingdom is Europe’s largest fintech market. According to industry sources, in 2025 alone, investment volume in British fintech reached approximately GBP 8 billion.

Mature ecosystem.

London concentrates the largest payment providers, banks, investment funds and technology companies — access to this ecosystem opens wide opportunities for business scaling.

Independent regulatory system.

After Brexit, the FCA actively shapes its own regulatory framework, which differs with greater flexibility compared to strict EU requirements. The FCA’s reform programme is oriented toward stimulating growth and competitiveness.

Innovation support.

The FCA maintains a developed innovation support infrastructure: Regulatory Sandbox, Digital Securities Sandbox, Supercharged Sandbox for AI — these tools enable testing of new products before full market launch.

Stable legislation.

The UK legal system, based on common law, provides a high level of asset protection and business environment predictability.

Note on passporting: After leaving the EU, British financial licences lost the right to automatic passporting to EEA countries. To operate in the European market, companies with FCA licences require separate authorization in EU states. COREDO provides services for obtaining licences both in the United Kingdom and EU member states — see our Financial Licences in the EU section for details.

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General Requirements for Authorization

The FCA imposes strict requirements on companies seeking authorization. Below are key criteria applicable to most types of authorization.

Organizational form.

The company must be registered in the United Kingdom (Companies House) and have its registered office and head office here. Registration as a private or public limited company (Ltd, PLC) is permitted.

Management and Fit & Proper.

All directors, controllers and senior managers must meet FCA’s Fit and Proper Test requirements: appropriate education and professional experience, unblemished business reputation, absence of convictions related to financial crime.

Share capital (initial capital).

The minimum capital level depends on authorization type: from GBP 20,000 for basic payment services to EUR 350,000 for AEMI and GBP 5,000,000 for banking licence.

Safeguarding.

Companies working with client funds must comply with segregation and client asset protection requirements under PSRs 2017 and EMRs 2011. New stricter safeguarding rules (PS25/12 FCA) take effect on 7 May 2026.

AML/CFT system.

All authorized firms must have a developed and implemented system for anti-money laundering and terrorist financing under Money Laundering Regulations 2017. Mandatory elements: MLRO (Money Laundering Reporting Officer) appointment, KYC/CDD procedures, transaction monitoring systems, SAR submission to the National Crime Agency (NCA).

IT systems and operational resilience.

The FCA requires demonstration of IT system reliability, business continuity plan (BCP), information security policies and disaster recovery plan (wind-down plan).

Business plan and financial forecasts.

Authorization requires a detailed business plan describing business model, target markets, revenue sources and 3-year financial forecasts with stress-testing.

Cost of COREDO Services

COREDO offers comprehensive support throughout the FCA authorization procedure. Pricing is stated without VAT.

Service	Cost
AEMI licence (PSP/EMI) — FCA authorization	from EUR 100,000 + VAT

Cost includes: preliminary analysis of structure and business model, development of business plan and financial forecasts, preparation of document package, interaction with FCA throughout the process, consulting support for AML system and safeguarding requirements setup, and responses to regulator queries.

FCA government fee for payment institution or EMI authorization application is paid separately.

Payment Terms

COREDO applies a phased payment scheme:

40%

after contract signing and work commencement;

40%

after application submission to FCA;

20%

after receiving positive FCA decision.

This structure ensures fair risk distribution between client and COREDO.

Document List

For FCA authorization application (AEMI or API), the following document package is required:

Company incorporation documents — Certificate of Incorporation, Memorandum and Articles of Association, Companies House registration confirmation.

Business plan — detailed description of business model, products, services, target markets, customer acquisition channels.

Financial forecasts — P&L, balance sheet, cash flow movement for 3 years, stress-tests.

Programme of Operations — description of operational activities and process structure.

Capital documents — confirmation of minimum initial capital availability (bank statement extracts, auditor’s report).

AML/CFT documentation — KYC/CDD policies and procedures, risk appetite, MLRO package, staff training programme.

Safeguarding policies — description of client asset protection scheme.

IT security and operational resilience — description of IT architecture, BCP, wind-down plan.

Director and senior manager documents — CV, reference letters, education documents, confirmation of absence of convictions.

Qualified shareholder documents — information on owners of 10%+ capital, source of funds, source of wealth.

Key counterparty contracts — information on processing partners, agent banks.

Complaints handling policy — internal procedures for handling client complaints.

GDPR/Data Protection — personal data protection policy, DPO appointment when required.

Transaction monitoring systems — description of screening tools and suspicious operation detection.

The FCA may request additional documents during application review.

Licensing Procedure

FCA authorization proceeds through several stages. Understanding each stage allows you to avoid errors and accelerate the process.

Preliminary analysis (1–2 months)

COREDO specialists analyze your business model, determine optimal authorization type, verify founders and managers meet Fit & Proper requirements, identify potential rejection risks and formulate application strategy.

01

Documentation preparation (2–4 months)

Development and agreement of complete document package: business plan, financial models, policies and procedures, AML documentation, IT policies. At this stage, a management team meeting FCA requirements is also formed.

02

Application submission via Connect (1 month)

Application is submitted through FCA’s electronic Connect system. Upon submission, FCA assigns application status and may request additional clarifications within set timeframes.

03

FCA interaction (3–9 months)

The FCA reviews the application, may initiate meetings and request additional documents or clarifications. COREDO specialists prepare all responses to regulator queries. Average review time for complete and correctly submitted applications is about 3 months; with incomplete documents, the procedure may take 10–12 months.

04

Authorization receipt and market entry

Upon approval, the company is entered in the FCA register. COREDO provides support at initial operational stage: compliance process setup, regulatory reporting preparation, operational requirements consultation.

05

Total timeline: 6 to 12 months from preparation commencement to authorization receipt.

Our Experts

FCA financial licence projects in the United Kingdom are managed by experienced COREDO specialists.

Pavel Kos

Heads the legal team at COREDO since July 2020. With the company since 2016 — progressed from project manager to head of legal team. Specializes in financial licensing, regulatory compliance and EU and UK business structuring.

Basang Ungunov

COREDO lawyer since June 2022. Specializes in legal documentation preparation, legal opinions and support for licensing procedures in various jurisdictions.

Frequently Asked Questions

Do I need company registration in the United Kingdom to apply for FCA authorization?

Yes. The FCA requires applicants to be registered in the United Kingdom (typically as Ltd or PLC) and have an actual head office and registered office within the country. PO box is not accepted. COREDO can assist with UK company registration as part of comprehensive support.

Can I conduct business in the EU with an FCA licence after Brexit?

No, not directly. Following the United Kingdom’s departure from the EU, FCA authorization does not grant passporting rights to EEA countries. To operate in Europe, separate authorization in one EU country is required. COREDO offers licensing services in Estonia, Lithuania, Poland, Czechia and other EU jurisdictions.

What is the minimum share capital for AEMI authorization?

For Authorised Electronic Money Institution, the minimum initial capital is EUR 350,000 — this is an EMRs 2011 regulatory requirement. Additionally, the company must maintain current own funds at 2% of issued electronic money volume. This is a regulator requirement, not COREDO service cost.

How long does FCA authorization take?

FCA authorization takes 6 to 12 months. The FCA has set an internal target review timeframe for complete and correctly submitted applications of about 3 months. Main delays are associated with incomplete document package or regulator requests for revision. Proper preparation with experienced consultants significantly reduces timelines.

What is FCA's Fit and Proper Test?

Fit and Proper (F&P) is an assessment conducted by the FCA for all individuals in Significant Influence Functions (SIF) or Senior Management Functions (SMF): directors, compliance officers, finance directors, etc. Assessment covers: reputation, competence, financial soundness, integrity. Financial crime history is grounds for refusal.

Is appointing an MLRO mandatory?

Yes. All authorized payment institutions and EMI must appoint a Money Laundering Reporting Officer (MLRO). This position falls under Senior Management Functions (SMF17) and requires separate FCA approval. The MLRO must have sufficient AML/CFT knowledge and genuine decision-making authority.

Do new 2026 safeguarding rules impact companies?

Yes. New FCA rules (PS25/12), effective 7 May 2026, tighten segregation, accounting and monitoring requirements for client funds for payment institutions and EMI. All operating and newly authorized companies must bring systems into compliance. COREDO advises on new requirements compliance.

Does the FCA have support tools for new fintech companies?

Yes. The FCA offers several tools: Innovation Hub for early-stage regulator dialogue, Regulatory Sandbox for product testing in controlled environment, Digital Securities Sandbox for capital markets. These mechanisms help startups develop business models compliant with FCA requirements before obtaining full authorization.

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Ready to obtain a financial licence in the United Kingdom? COREDO specialists will evaluate your business model and develop optimal FCA authorization route.