The FCA has updated its guidance for EU-based payments firms operating in the UK on a temporary permission. Forms are now available for payments and e-money institutions to notify the regulator of their intention to cancel their UK licence or start winding down their UK business.
The FCA explains that:
- Firms in the temporary permissions regime can notify the FCA to end their temporary licence and, where they continue to have business which requires them to carry on providing payment services or e-money services in the UK (and meet certain conditions), use the supervised run-off regime to wind down any existing UK business.
- Firms in the TPR and SRO that no longer have any business which requires them to provide payment services or e-money services in the UK can apply to the FCA to end their temporary / limited permission.
The latter option is only suitable for firms intending to leave the UK regulatory regime. The relevant form asks for confirmation that all relevant funds have been returned to customers and any outstanding e-money has been redeemed.
Many firms will therefore opt to move into the SRO first, but they should not do so lightly. The FCA will demand details of the firm's plans to wind down its UK operations, including details of the number and types of customers and plans for returning relevant funds to customers. Unlike the TPR, new business cannot be undertaken when in the SRO.
Firms in the TPR and SRO that no longer have business which requires them to have UK permission can apply to us to cancel their temporary/limited permission and leave UK regulation.