![]() ![]() A description of how it will safeguard e-money funds.Governance and internal procedures covering roles and responsibilities.To be authorised by the FCA, the institution must submit a range of business and operational details including: Electronic money institution (EMI)Īn electronic money institution can issue digital money to store on electronic devices. Knowing that firms are closely regulated and vetted means that customers can be more confident in their choice of a payment service provider, and it’s essential for the success of open banking. For a detailed discussion of the criteria and standards for compliance, see the FCA’s Approach to Authorisation. It will authorise or approve only those who meet these standards, and it will prevent anyone from entering the market who does not comply. The FCA establishes the basis for authorisation and the minimum standards that must be met to achieve authorisation. The FCA is responsible for monitoring the role and actions of PSPs and authorising their legal status as payment institutions and electronic money institutions. Its objectives include protecting consumers, building market integrity, and promoting competition. The FCA was created to regulate the conduct of the UK’s financial services. Let’s take a closer look at the role of the FCA, what API and EMI mean, and how Safenetpay is satisfying the regulators and meeting European directives. Safenetpay was previously an authorised payment institution (API) and has now been re-licensed as an authorised electronic money institution (EMI). This applies to PSPs whether they are seeking approval as payment institutions or electronic money institutions - or indeed both.Īs a PSP, Safenetpay is subject to close scrutiny by the FCA (Financial Conduct Authority) and must comply with legislation such as the Second Payment Services Directive (PSD2). Strict regulation and compliance is fundamental in financial services, and anyone operating in the payment space must satisfy a range of requirements before going into business.Ĭonsumers need to be confident that their transactions are secure and that their chosen payment service provider (PSP) meets all its legal obligations.
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