Reference Case Number: FOI8658
Freedom of Information: Right to know request:
- How many Payments Institutions and Electronic Money Institutions are being investigated by the FCA since January 2018?
- How many fall in to the medium or small firm category?
- Are all PIs required to be authorised?
- Are there checks in practice on the suitability/backgrounds of the directors of payments institutions?
- What do the checks entail in practice?
- How many have been refused authorisation or denied since January 2018?
FCA response:
1. How many Payments Institutions and Electronic Money Institutions are being investigated by the FCA since January 2018?
Seven investigations into Payment and Electronic Money Institutions have been opened since January 2018.
2. How many fall in to the medium or small firm category?
PERG 15 describes the conditions for authorisation as a payment institution per regulation 6 of the Payment Services Regulations 2017 and the alternative regime for the firms that fall into the category of ‘small payment institutions’ as described at regulation 15.
Pursuant to PERG 15, only one of the above referred investigations relates to a firm identified as a small payment institution. We do not have any specific criteria for defining ‘medium firms’ as this is not defined in PERG 15. Consequently, we do not hold the requested information.
3. Are all PIs required to be authorised?
Unless otherwise exempt or excluded, payment institutions carrying out any of the payment services listed in Schedule 1 Part 1 Payment Services Regulations 2017 (the PSRs) as a regular occupation or business activity must be either registered or authorised by the FCA. Guidance on whether an activity constitutes a regulated payment service under the PSRs is set out.
4. Are there checks in practice on the suitability/backgrounds of the directors of payments institutions?
Checks of the nature you have specified are carried out.
5. What do the checks entail in practice?
These checks are performed to establish any adverse information about the applicant, fitness and propriety, competence, capability and experience. More details on the scope of our assessment can be found in our Approach Document, paragraphs 3.101 to 3.110.
6. How many have been refused authorisation or denied since January 2018?
The table below provides details on the number of firms we have concluded our assessment of since January 2018 and the outcome of those assessments. Firms fail to gain approval for a number of reasons but a key one includes the suitability of individuals.
|
Status |
2018* |
2019 |
2020 |
2021 |
|---|---|---|---|---|
|
Approved |
1027 |
253 |
210 |
135 |
|
Refused |
|
|
|
1 |
|
Rejected |
5 |
7 |
12 |
1 |
|
Void |
13 |
11 |
9 |
|
|
Withdrawn** |
90 |
92 |
108 |
152 |
|
Total |
1135 |
363 |
339 |
289 |
* Figures for 2018 include about new authorisations and the re-authorisation of firms following the implementation of PSD2.
** Where we are not satisfied that a firm can meeting the conditions for authorisation or registration, firms will typically withdraw the application rather than be refused. Firms are able to withdraw an application at any time before they receive a Decision Notice from the FCA.